What seemed like the end of the Nigerian currency, is gradually making head way up as Naira appreciates by N70 per dollar. Just last Thursday, the parallel market exchange rate rose to N400 per dollar and then dropped by the end of the week to N375. Currently, the naira continues to appreciate as the parallel market exchange rate has dropped further to N305 per dollar.
According to Bureau De Change operators, they bought from customers at N270 per dollar and sold at average of N305 per dollar yesterday. An Abuja based Bureau De Change operator said the wide gap between the buying rate and selling rate was due to attempt by operators to minimize their loss. He said,
“People had bought when the rate was N370, and they are already making loss. But by combining dollars bought at N270, the average buying rate becomes N320. So at N305, they are still losing about N15 per dollar.”
The President of the Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe confirmed this development, saying the sector has instructed their members to buy within the regulated exchange rate in the economy. However, on Tuesday, ABCON dissociated itself from the recent depreciation of the naira from N265 per dollar to N400. The association said the depreciation was not caused by BDCs, and that they would introduce a weekly exchange rate band to guide BDCs and members of the public.
“On the part of ABCON, as a way of enhancing transparency in the BDC subsector, we have decided to introduce weekly foreign exchange rate band. This will serve as a guide to all BDCs and members of the public on the prevailing exchange rate across the country.
“The Rate Band will be operated in line with the regulated foreign exchange rate in the economy. This is to forestall exploitation of foreign exchange end users, and also to ensure that end users are informed enough to avoid falling victims of exploitation.
“The Rate band will be announced via weekly press release that would be circulated to the media for publication.”
The parallel market is never stable and fluctuates every second. Irrespective of the exchange rules put together by the sector, some BDC officers still sell differently. Anyways, The Sun says naira gained about 30 per cent against the dollar at the parallel market on Wednesday. The market traded between N250 and N280. However, the naira rate closed at N197.50 yesterday at the official interbank market, where the Central Bank of Nigeria, CBN limits introduced last year to defend a currency peg have restricted access to dollars.