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Naira Appreciates to N891.90/$1 at Official Market
Naira Appreciates to N891.90/$1 at Official Market
The naira experienced a notable gain against the US dollar on Friday, January 26, 2024, at the official market. This development saw the domestic currency appreciating by 1.02%, closing at N891.90 to a dollar at the close of business, as per data from the NAFEM, the official forex trading platform. This positive shift represents an N9.06 gain or a 1.02% increase in the local currency compared to the previous day’s close at N900.96. It’s worth noting that the intraday high recorded was N1421/$1, while the intraday low was N700/$1, indicating a wide spread of N721/$1. Additionally, forex turnover at the close of trading was $100.97 million, marking a 12.35% decrease compared to the previous day.
However, the naira closed flat at the parallel forex market, where the exchange rate remained at N1410/$1, the same as the previous day. Peer-to-peer traders quoted around N142.98/$1. This stability in the unofficial market is occurring amidst ongoing efforts to authorize the Association of Bureau De Change Operators of Nigeria (ABCON) to publicly display black-market rates of the naira against the dollar on online platforms.
More than two years after the ban on AbokiFX for publishing parallel market exchange rates online, ABCON is seeking approval to publicly display exchange rates. Aminu Gwadabe, the President of ABCON, expressed the association’s proposal to regulators to allow BDCs to restart the public display of exchange rates. As part of the proposal, ABCON is upgrading the functionality of its existing website to compete with other platforms in the economy. This proposed move signals a departure from the measures implemented by the former central bank leadership, which sought to regulate BDC operations and reduce the prominence of the unofficial market.
In September 2021, the Central Bank of Nigeria took action against AbokiFX, a platform that publishes black market exchange rates for the Naira online, levying allegations that the platform was involved in “illegal activities that undermine the economy.” The apex bank’s actions against AbokiFX were part of a broader effort to regulate and control the exchange rate environment.
The ongoing developments in the Nigerian forex market point towards a potential shift in regulatory approach, with the possibility of increased transparency in black-market rate reporting. As these changes unfold, it will be crucial to monitor how they impact the broader forex landscape and the stability of the naira. The proposed authorization for public display of black-market rates, if implemented, could bring about a new era of transparency and accountability in Nigeria’s forex market.
