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BREAKING: Naira Gains Momentum: Appreciates by 9.09% in Parallel FX Market

In a surprising turn of events, the Nigerian Naira has continued its impressive appreciation streak in the parallel foreign exchange (FX) market. On Wednesday, the local currency traded at N1,500 per U.S. dollar, marking a substantial 9.09% gain from the N1,650/$ recorded just two days earlier on Monday.

Currency traders, commonly known as bureau de change (BDC) operators, quoted the buying rate at N1,450 and the selling price at N1,500, creating a profit margin of N50.

Simultaneously, at the official window of the country’s foreign exchange, the naira experienced an appreciation to N1609.51 against the dollar on Wednesday. This represents a notable 1.67% increase from the N1,582.94/$ rate observed on Monday.

In response to this positive trend, Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), emphasized that the naira’s undervaluation is primarily attributed to distortions caused by certain actors in the foreign exchange market. Cardoso asserted, “As and when we come up with these distortions, we will take them off and throw them away, and where there are distortions that come about as a result of bad behavior, we will ensure that those who do it will face the music as a deterrent to ensure that others in the future do not take that route.” He further noted that these perpetrators contribute to the confusion in the FX market.