Naira Makes Strong Gains Against Dollar After FX Sale to BDC Operators
The Nigerian naira made a significant appreciation against the US dollar on Thursday, just a day after the Central Bank of Nigeria (CBN) sold foreign exchange to operators of Bureau De Change (BDC).
According to data from FMDQ, the naira gained N91.32 to trade at N1576.10 per dollar, a significant improvement from the previous day’s rate of N1667.42. This appreciation is a stark contrast to the weakening of the naira by N104.76 against the dollar on Tuesday and Wednesday at the official foreign exchange market.
The appreciation of the naira was also reflected in the black market, where the currency dropped to N1695 per dollar on Thursday, down from N1705 earlier in the week.
The CBN’s decision to sell foreign exchange to BDC operators at N1590 per dollar on Wednesday is believed to have triggered the sudden appreciation of the naira. The move was seen as a boost to the foreign exchange market, as it provided a much-needed injection of liquidity into the system.
The development is likely to be welcomed by Nigerians and businesses alike, who have been grappling with a devalued currency in recent times. With the naira now appreciating against the dollar, it is hoped that this will have a positive impact on the economy and lead to an increase in foreign investment and trade.
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