Black market speculators who had bought dollars in anticipation of a rise in exchange rates had their hopes dashed as the Naira appreciated against the U.S dollar to N506/$ at the parallel market.
Some of the traders had bought dollars in anticipation that the Central Bank of Nigeria’s decision to stop selling dollars to BDCs would increase pressure in the market.
However, on Wednesday, Naira appreciation extended to a five-day streak, a movement that began last week.
According to data from Abokifx, traders sold the Dollar to customers on Wednesday at N508/$1 but in the afternoon, it was exchanged at N506/$1, the price it also traded in the evening.
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Also, Nigerian currency gained N3 against the Euro, closing at N595/€1 as opposed to N598/€1 while it closed flat against the Pound Sterling at N705/£1 same rate it exchanged the previous day.
At the Investors and Exporters (I&E) the official segment of the Forex Market, data from FMDQ securities showed that the value of the local currency compared with the US Dollar remained unchanged at N411.50/$1 despite a rise in the turnover by $11.75 million or 10.2 per cent to $126.92 million from the previous day’s $115.17 million.