Naira Gains More Strength as Goldman Predicts Trade Below N1,000 to a Dollar Sooner

The naira, on Friday, appreciated to N1,150 per dollar at the parallel section of the foreign exchange (FX) market.

Currency traders in Lagos, also known as bureau de change (BDCs) operators, quoted the buying rate of the greenback at N1,110 and the selling price at N1,150 — leaving a profit margin of N40.

The naira appreciated by 0.86 percent from the N1,160 recorded on April 11.

“The dollar is falling and it is not my fault. It is how the FX market is now,” Lawal, a BDC operator, told journalist in Lagos.

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Also, FMDQ Exchange, a platform that oversees official foreign exchange (FX) trading in Nigeria, said the naira rose by 7.16 percent or N88.23 to N1,142.38/$ on Friday — from N1,230.61/$ on Monday.

The appreciation of the naira is coming a few days after the CBN opened the third tranche of sales to BDC operations.

The apex bank began the sale of foreign exchange to BDC operators at the rate of N1,101/$ on April 8.

Also, on the same day, the CBN directed all banks to stop the use of foreign currency-denominated collaterals for naira loans.

The financial regulator is intensifying its efforts to boost liquidity and strengthen the naira.

Meanwhile, earlier today, Goldman Sachs Group Inc. said the naira could extend gains to trade below N1,000 to the dollar.