Naira Makes Further Tremendous Recovery Against the Dollar in Hours

The demand for the Dollar in the parallel market seems to have dropped following President Muhammadu Buhari's stand against a devaluation of the Naira, hence a boost in its value against the dollar.

 

 

The Naira Tuesday appreciated further to N345 per dollar in the parallel market. Meanwhile bureaux de change BDC) operators have voiced their support for the federal government’s position against further devaluation of the naira kicked against further devaluation of the naira.

 

Reuter reported some hours ago, today the 23rd of February that naira has appreciated to N364 against the dollar. This shows a rapid progress rate in favour of the Nigerian economy.

 

Vanguard investigation reveals that the parallel market exchange rate, which had been on the downward trend since last week, fell further to N345 per dollar at the close of business yesterday from N375 on Monday. BDC operators attributed the continued appreciation to increased supply and sharp decline in demand for foreign exchange.

“People are coming to the market to sell but there is no demand”, said Taiwo Ebenezer, South West Zonal Chairman, and Association of Bureaux De Change Operators of Nigeria (ABCON).

 

Speaking at a press conference Tuesday, ABCON President, Alhaji Aminu Gwadabe, dissociated BDC from the rapid depreciation of the naira from N265 to N400 in the parallel market saying such developments is not good for the business of BDC.

 

He said, “Depreciation of the naira affects the working capital of BDCs and by extension their turnover. BDCs are able to do more business when the exchange rate is stable and relatively close to the official exchange rate. Hence, BDCs cannot promote what is injurious to their business.

 

"Secondly, BDCs are basically intermediaries. They buy dollars from the public and sell to the public. Our incomes come from the margin between the selling rate and buying rate.