In a recent turnaround, the value of the Nigerian naira has soared in Lagos and Kwara States, trading between N900 and N1,210 per dollar on the black market on Wednesday.
This remarkable increase comes in the wake of actions taken by the Central Bank of Nigeria (CBN) earlier this week.
The CBN, through a directive signed by Hassan Mahmud, its director of trade and exchange department, allocated $10,000 to each registered bureau de change (BDC) operator at a rate of N1,251 per dollar.
BDC operators are mandated to sell dollars at a profit margin not exceeding 1.5 percent, resulting in the local currency gaining strength against the US dollar.
Upon investigation by FIJ, currency exchangers in Ilorin and Lagos revealed varying rates. Olalode, operating in Ilorin, was buying a dollar at N1,210 initially, while Hussaini, trading in Lagos, initially cited instability in the black market rate.
However, Hussaini later confirmed readiness to buy a dollar for N900, with a ceiling of N910 per dollar, highlighting the fluidity of black market rates influenced by negotiation dynamics.
Meanwhile, the Guaranty Trust Bank (GTB) quoted N1,200 for a dollar on its GTWorld FX platform, marking a notable contrast to black market rates. Naira Rates, an automated currency speculative account, valued the naira at N1,345 per dollar before recent fluctuations.
These currency fluctuations have prompted adjustments in exchange rates by government service providers such as the Nigeria Customs Service (NCS), which has revised FX rates for import duties and cargo clearance multiple times in the past two weeks.
Prior to the CBN’s intervention, the naira had been fluctuating between N1,500 and N1,600 per dollar, underscoring the impact of recent monetary measures on the currency’s stability.
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