The Naira on Tuesday, November 8, recorded gain against the dollar as it now trades at N465/$1 in the black market. This is higher than the N470/$1 rate it maintained for the past one week.
According to economists, the gain recorded by the nation’s currency on the unofficial segment of the market can be attributed to improved dollar liquidity to the Bureau De Change (BDC) arm of the market.
NAIJ.com recalls that the Central Bank of Nigeria had last month appointed Travelex and FirstBank Nigeria Limited as the only two institutions responsible for the sale of the greenback to BDCs, in its bid to ensure improved dollar supply to the foreign currency traders.
This has helped sustained the growth of the local currency as economic and financial experts believe the local currency may not fall below 475 against the United States dollar between now and end of December, even if it suffers another crash.
“It appears the exchange rate has got to the peak, which is something around 470/dollar. I think the naira may not go beyond 475/dollar between now and end of December,” a currency strategist at Ecobank Nigeria, Mr. Kunle Ezun said.
He added that holidaymakers returning to Nigeria for Christmas would also make dollar supply to increase.
And according to Alhaji Aminu Gwadabe, president of Association of Bureau De Change Operators, efforts being made by the CBN to boost supply would make the Naira to appreciate in coming months.
READ ALSO: Naira appreciates to N470/$1 in black market
Gwadabe said: “The CBN Governor, Mr. Godwin Emefiele, met with the International Money Transfer Organisations in London on Saturday. The government is trying to woo these operators to enable them to bring more forex into the country. This will boost supply. Already, the exchange rate which the IMTOs can sell dollars to the banks has been increased from 336 to 375.
“At the association level, we have created committees that will check sharp practices in the market. All these will yield result.”
Meanwhile, you can check out NAIJ.com’s Bureau De Change ‘market’ here for the best rates on foreign exchang
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