Naira appreciates against dollar at parallel market
The parallel segment of the foreign currency (FX) market saw an increase in the value of the naira on Monday, reaching N1,120 per dollar. The FX rate as of right now represents a 9.67 percent decline from the N1,240/$ that was released on April 3.
In Lagos, street vendors or bureau de change (BDC) operators quoted the purchase rate of local currency at N1,100 and the selling rate at N1,120, making a N20 profit.
The local currency increased by 1.63 percent at the official window on Monday, from N1251.05/$ on April 5 to N1,230.61/$.
The Nigerian Autonomous Foreign Exchange Market (NAFEM), popularly referred to as the official window, is supervised by FMDQ Exchange, a platform that recently disclosed a $125.55 million turnover.
The difference between the official window rates and the parallel market stood at N110.61 at the close of trading. On March 10, however, Goldman Sachs had forecast that in the upcoming year, the value of the naira relative to the dollar will increase to N1,200.
“We thus see reason for the Naira to be undervalued, and we see it appreciating to 1200 within the next 12 months,” Goldman Sachs said.
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