Naira appreciation Faster faster than expected, say BDC operators.

Naira, the currency of Nigeria, has strengthened against the dollar at a higher rate than anticipated, according to the Association of the Bureau De Change Operators of Nigeria (ABCON).

On Tuesday, the Business Incorporated broadcast featured a virtual speech by the Association President, Aminu Gwadabe.

While the official rate set by the Central Bank of Nigeria (CBN) is N1161/$1, as per Gwadabe’s reporting on Tuesday afternoon, the BDC operators are reportedly buying the dollar for N980/$1 and selling it at N1,020/$1.

Since early January, when it was trading at around N1,900/$, the naira has risen against the dollar, increasing its value by more than 40% to around N1,100/$ nowadays.

Since then, the central bank has taken several steps to fortify the naira against foreign exchange. These include, but are not limited to, clearing approximately $7 billion in legitimate foreign exchange backlogs, selling foreign currency to more than 1,500 BDC operators at the official rate, and imposing strict regulations on cryptocurrency platforms such as Binance that are believed to be involved in speculation.

This is the first time in the past fifteen years that the dollar would exchange at a lower rate in the parallel market than at the official rate, according to the head of the BDC, who praised the present administration for their efforts thus far.

The hard path did not begin today, he declared. It didn’t happen overnight, but it’s the result of a lot of things coming together. The leadership of the Central Bank has my sincere congratulations. The open market has never been lower than the CBN rate in the fifteen years that this country has been in existence. Congratulations to the people of Nigeria and praise to the Central Bank.

For the first time in its history, the naira is no longer burdened by market speculation, and the atmosphere is one of relative tranquilly.

What we’re witnessing now proves that the previous events were based on nothing more than a bubble, and that bubble has now burst.

There was a lot of turbulence and mixed emotions brought on by the stress test policies that began with the market unification, but in the end, they were successful in bringing about convergence. To achieve a single market rate, all that is required is for the exchange rate to converge. So, best wishes to the new administration.