Naira Surges in Parallel Market: Latest Update

The Nigerian currency, the naira, experienced a notable surge against the US dollar in both the parallel and official segments of the foreign exchange (FX) market on Monday.

In the parallel market, also known as the black market, the naira strengthened to N1,600 per dollar, indicating a 1.23 percent gain from the N1,620/$ rate reported on March 8.

Bureau De Change operators in Lagos quoted the buying rate of the US dollar at N1,570 and the selling rate at N1,600, offering a profit margin of N30 for currency traders.

Simultaneously, in the official FX market, the naira appreciated by 0.58 percent to N1,617.96, up from N1,627.40on March 8.

Trading data from the FMDQ Exchange revealed fluctuations throughout the day, with the FX rate reaching as high as N1,650 and dropping to a low of N1,511.

In related news, financial giant Goldman Sachs predicted on March 7 that the naira would appreciate to N1,200 against the dollar within the next twelve months.

This forecast relies on the implementation of positive real interest rates and the attraction of capital inflows as solutions to Nigeria’s currency and external liquidity crisis.

As of today, March 12, 2024, the Central Bank of Nigeria sells at ₦1492.73 and buys at ₦1493.73.