As of Wednesday, the naira surged in value, trading between N900 and N1,210 per dollar on the black market in Lagos and Kwara State, marking a significant increase.
This uptick in the naira’s value extends to the import and export (I&E) window as well.
The recent appreciation is attributed to a move by the Central Bank of Nigeria (CBN) on Monday. The CBN, through a letter signed by Hassan Mahmud, director of the trade and exchange department, allocated $10,000 to each registered bureau de change (BDC) operator at the rate of N1,251 per dollar. BDC operators are instructed to sell dollars with a profit margin not exceeding 1.5 percent. This policy shift has bolstered the local currency against the US dollar.
FIJ engaged with two BDC operators in Lagos and Kwara State to negotiate the exchange rate of the naira.
Olalode, a currency exchanger based in Ilorin, Kwara State, stated he was purchasing a dollar at N1,210. When questioned about the high rate, he mentioned flexibility depending on the transaction volume.
Hussaini, operating at Ikorodu garage in Lagos State, initially refrained from disclosing a price due to market volatility. Later, he confirmed readiness to buy a dollar for N900 from the reporter, with a maximum limit of N910, even for transactions up to $500.
Black market rates are subject to negotiation between sellers and BDC operators, influencing the final transaction price.
GTWorld FX platform by Guaranty Trust Bank (GTB) quoted N1,200 per dollar at 2:12 pm on Wednesday, down from N1,250 earlier in the day. Additionally, Naira Rates, an automated currency speculative account, valued the naira at N1,345 per dollar two hours prior.
Given the currency’s fluctuations, government service providers, like the Nigeria Customs Service (NCS), have adjusted FX rates for import duties and cargo clearance multiple times within a fortnight.
Before the CBN’s intervention, the naira was fluctuating between N1,500 and N1,600 per dollar.
