Naira strengthens to N1400/$ at parallel market

Parallel market operators are quoting a buy price of N1400/$1 for holders of dollars looking to sell, marking a significant strengthening on the naira. Findings by Daily Trust suggests that the exchange rate has been gaining lately as speculators start to dump their hoard of dollars following waning demand. Multiple sources who operate in the […]

Parallel market operators are quoting a buy price of N1400/$1 for holders of dollars looking to sell, marking a significant strengthening on the naira.

Findings by Daily Trust suggests that the exchange rate has been gaining lately as speculators start to dump their hoard of dollars following waning demand.

Multiple sources who operate in the parallel market revealed that the naira has risen from around N1600/$ which it closed on Tuesday to N1500/$.

However, they buy at N1400/$1 allowing them to make a spread of N100/$1.

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At the official Nigerian Autonomous Foreign Exchange (NAFEM) market, the exchange rate sold at N1,492, a strengthening from the N1560.57 to $1 it sold on Tuesday.

Data from FMDQ Securities reveals that there has been an impressive increase of 4.34% or $1.43 billion in daily turnover from the beginning of the year to March 18th, 2024.

Also, the foreign investors’ appetite for CBN’s OMO auction and Nigeria’s Treasury bills might be connected to the recent gains of the naira in the past few days. The apex bank had earlier reported that foreign investors dominated Treasury bills and OMO auctions as about 75% of subscribers were foreigners.

Furthermore, the bank noted that there has been significant forex inflow in the past month as remittances from Nigeria’s diaspora reached $1.3 billion in February from just $300 million received in the preceding month marking a fourfold increase.