Nigeria Currency Traders Cheer as Naira Strengthens to N1,250 Per Dollar

The Nigerian naira saw an appreciation to N1,250 per dollar in the parallel foreign exchange market on Monday, marking a 0.43 percent increase from the N1,280 recorded on March 29.

Bureau de Change operators in Lagos quoted the buying rate of the dollar at N1,230 and the selling price at N1,250, indicating a profit margin of N20. Despite the dollar's decline affecting businesses, there's a gradual uptick in economic activities, according to currency trader Aliyu.

Conversely, at the official FX market, the naira depreciated by 0.69 percent to N1,309.39 per dollar on March 28 from N1,300.43 on March 27.

Aminu Gwadabe, the president of the Association of Bureau de Change Operators of Nigeria, attributed the stability in the exchange rate to the recall of BDCs into the FX market, which curbed illegal economic behaviors and led to exchange rate convergence.

Gwadabe also highlighted the increase in FX inflows through the Central Bank of Nigeria's monetary tools, boosting foreign reserves and enabling the apex bank to defend the local currency.

Overall, the fluctuating exchange rates between the naira and the dollar reflect ongoing dynamics in Nigeria's foreign exchange market, with efforts aimed at stabilizing the currency and promoting economic resilience amidst global economic challenges.