Bureau de Change Operators Report Steep Decline; Central Bank Vows Measures for Stability
In a significant development, the Nigerian naira has reached an unprecedented low at the parallel section of the foreign exchange market. According to reports from Gatekeepers News, the local currency experienced a sharp decline, trading at N1,415 on Thursday. This marks a 3.66 percent decrease from the N1,365 recorded just two days prior on Tuesday.
Currency traders, commonly referred to as Bureau de Change (BDC) operators, disclosed that the buying rate for the greenback stood at N1,400, with a selling price of N1,415, allowing for a profit margin of N15.
In contrast, the official section of the foreign exchange (FX) market witnessed a more modest depreciation of 0.41 percent on Wednesday, settling at N882.24 compared to N878.61 on Tuesday.
FMDQ Exchange, the platform overseeing official FX trading in Nigeria, reported a high of N1,313 and a low of N700 for the naira.
The recent economic development follows statements from Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), who expressed concerns about the current undervaluation of the naira.
Governor Cardoso stated, “We believe that the naira is currently undervalued,” emphasizing that, in conjunction with coordinated fiscal measures, the CBN will take steps to accelerate genuine price discovery in the near term.
He further elaborated on the CBN’s commitment to a conventional monetary policy approach, concentrating on achieving price stability as a means to foster sustainable economic growth. As the nation grapples with these economic shifts, stakeholders are keenly observing the Central Bank’s strategies to address the naira’s volatility and bring stability to the foreign exchange market