Naira appreciates at parallel market

Naira has continued its appreciation streak at the parallel section of the foreign exchange (FX) market.

The local currency traded at N1,500/$ on Wednesday, representing a gain of 9.09 percent from N1,650/$ recorded on Monday.

Currency traders, known as bureau de change (BDC) operators, quoted the buying rate at N1,450 and the selling price at N1,500 — leaving a profit margin of N50.

At the country’s official window, the naira appreciated to N1609.51 against the dollar on Wednesday — a 1.67 percent increase from the N1,582.94/$ traded on Monday.

Meanwhile, Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), said the naira is undervalued largely due to distortions by perpetrators in the foreign exchange market.

“As and when we come up with these distortions, we will take them off and throw them away and where there are distortions that come about as a result of bad behaviour, we will ensure that those who do it will face the music as a deterrent to ensure that others in future do not take that route,” Cardoso said.

He added that such perpetrators confuse the FX market.