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Naira appreciates against dollar in black market

NEWSMAN, Abuja – Naira appreciated against the United States Dollar on the parallel market on Monday, having stagnated at N477 against the greenback for some days.

The local currency exchanged for N465 to the dollar, representing a N12 gain over the closing rate of the previous session, according to abokiFX, which collates rates from informal currency traders.

Meanwhile, naira remained stable against dollar at over-the-counter spot market also known as the Investors and Exporters (I&E) window, closing at N385.67. The rate touched an intraday high of N386 and a low of N383 before settling at N385.67

The opening indicative rate was N386.50 to a dollar in contrast to the N386.93 on Friday.

Forex turnover expanded by 19% at the I&E window. According to the FMDQ, turnover climbed from $12.09 million on Friday to $14.37 millio.

The total forex trading at the I&E window in July was $937 million relative to the $875 million posted the month before, Ripples Nigeria reported.

Meanwhile, Central Bank of Nigeria (CBN) has announced that it would resume dollar sales to bureau de change operators.

CBN said its decision to resume FX sales to BDCs is to enhance accessibility to forex “particularly to travellers” since the resumption date for international flights has been announced.

The CBN also said deposit money banks shall continue to sell forex for travel-related invisible transactions to customers and non-customers over the counter upon presentation of relevant travel documents, passport, air ticket and visa.

Musa Nuhu, director-general of the Nigerian Civil Aviation Authority (NCAA), announced on Thursday that international flights will resume on September 5; shifting it from August 29.

President of the Association of Bureau de Change Operators of Nigeria (ABCON), Aminu Gwadabe, said the resumption of foreign exchange to BDCs would usher in stability in the market.

Gwadabe said BDCs would remain the potent monetary tool of the CBN exchange rate stability instrument.

It is expected that the resumption of Bureau de Change operations later this month will further boost liquidity in the forex market.

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