The Naira on Thursday sustained its gains against the dollar at the parallel market, the News Agency of Nigeria (NAN) reports.
The Nigerian currency lost 0.50 to exchange at N362 from the N361.5 it posted on Wednesday, while the Pound Sterling and the Euro closed at N474 and N424, respectively.
At the Bureau De Change (BDC) window, the Naira closed at N362 to the dollar, while the Pound Sterling and the Euro traded at N476 and N424, respectively.
Trading at the investors’ window saw the Naira closing at N362.29, while it closed at N305.7 at the CBN rate.
Traders at the market expressed mixed feelings at the near convergence between the parallel market, the Bureau De Change (BDC) and the interbank market rates.
A cross-section of some BDCs in Lagos expressed concern on the convergence of the parallel market rates and the BDC rates, and called on the CBN to do the needful.
They argued that a rate adjustment was needed to forestall a slow but progressive drop in profit in the sector.
However, Alhaji Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON), has sued for calm among its members on the present reality.
Gwadabe noted that in spite of dwindling profit in the sector, the relative stability in the foreign exchange market, where the BDCs play critical role, is worthy of celebration.
“Sometimes, it is not all about profit in business; stability in the foreign exchange market is our ultimate concern and the BDCs are partnering with the CBN to achieve that,’’ Gwadabe said.
NAN reports that the foreign exchange market was rattled by the outcome of the CBN Monetary Policy Committee (MPC) meeting on Tuesday, leading to a sharp fall in the prevailing rates at the parallel market.
Prior to the close of the MPC meeting, the Naira had remained relatively stable, hovering between N360 and N365 at the parallel market.
The CBN as watchdog of the foreign exchange market, has intensified its interventions at the market, leading to a greater flexibility and stability in the exchange rate.
