DOLLAR FALL TO NAIRA
Its been almost a year since the Dollar fell below the N400 barrier. The greenback traded at about N399 to Dollar in cities like Lagos. It also exchange for about N390 to N395 in the Federal Capital Territory (Abuja) lower than the N410 at which the Naira was traded to the Dollar as at last week.
The Naira trades for about N375 to the greenback for “invisible” and also at N307 to the dollar on the FX inter-bank market rate. The official means for producers and importers of goods and raw materials eligible to purchase FX from this section of the market.
Note that the last time the Naira traded or exchanged at between the range of N390 and N400 to the Dollar on the parallel market was in August 2016 (almost a year).
This gain made by the Naira on the parallel (black) market, according to some market analysts, was a refection of the improved confidence in the Foreign exchange market, following the improved Dollar interventions by the Central Bank Of Nigeria (CBN) since the last month. with the kind of profits made by the local currency within the last five weeks, the Naira inched closer to one of the Central Bank Of Nigeria’s (CBN) key foreign exchange rate convergence.
one market analyst also contributed saying that the profits made by the Naira to the Bureau De Change (BDC) operators that are awash with Dollars and with few or no customers to patronize them. He also mentioned that some local retail customers who used to resort to the Bereau De Change (BDC) which realistically fund the parallel (black) market to fund invisible transactions now get to buy dollars at a lower rate from the banks.