Parallel market traders are quoting a buy price of N1400 for every dollar, indicating a notable strengthening of the naira.
Recent findings suggest that the exchange rate has been upward as speculators begin to offload their stockpile of dollars due to diminishing demand.
Various sources operating within the parallel market have confirmed that the naira has appreciated from around N1600/$1, the rate it closed on Tuesday, to N1500/$1. However, they purchase at N1400/$1, allowing for a spread of N100/$1.
In the official Nigerian Autonomous Foreign Exchange Market (NAFEM), the exchange rate was recorded at N1,492, strengthening compared to the N1560.57 to $1 rate observed on Tuesday.
Data from FMDQ Securities indicates a notable 4.34% increase in daily turnover, totaling $1.43 billion from the beginning of the year to March 18th, 2024.
The recent gains of the naira are believed to be linked to the foreign investors’ interest in the Central Bank of Nigeria’s (CBN) Open Market Operations (OMO) auctions and Nigeria’s Treasury bills. The CBN reported that foreign investors dominated subscriptions to Treasury bills and OMO auctions, accounting for approximately 75% of subscribers.
Additionally, the CBN highlighted a significant influx of foreign exchange over the past month, with remittances from Nigeria’s diaspora reaching $1.3 billion in February, marking a fourfold increase from the $300 million received in the previous month.
