Naira appreciates, drops below N1600/$ at parallel market

The naira, on Wednesday, appreciated by 1.88 percent to N1,570 at the parallel section of the foreign exchange (FX) market from the  N1,600/$ traded on March 11.

Currency traders in Lagos, also known as bureau de change (BDC) operators, quoted the buying rate of the greenback at N1,550 and the selling price at N1,570 — leaving a profit margin of N20.

At the official section of the FX market, the local currency depreciated by 0.78 percent to N1,615.94/$ on Wednesday — from N1,603.38/$ on March 12.

According to FMDQ Exchange, a platform that oversees official FX trading in Nigeria, the naira recorded a high of N1,635 and a low of N1,500.

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FMDQ reported daily FX turnover rose by 103.59 percent to $248.75 million — compared to $122.18 million recorded the previous trading day.

On March 13, the federal government said an increase in oil production would bring in dollars without causing inflation.

Wale Edun, minister of finance and coordinating minister of the economy, said crude oil output has now increased to 1.65 million barrels per day (bpd), from 1.25 million bpd in June 2023.

“Now, it is up to 1.65 million barrels per day, that is one source of bringing in dollars and revenue into the government coffers that is non-inflationary,” he said.

Edun also said an increase in oil revenue would provide funds for critical infrastructure.