BREAKING: Naira bounces back against the Dollar in parallel market

ADVERTISEMENT

The naira this morning reversed its two weeks loss to the dollar in the parallel market, appreciating by N20 to N470 per dollar.

The naira had earlier depreciated by N30 against the dollar, as the parallel market exchange rate rose sharply to N500 per dollar on Monday November 30th from N470 per dollar on Friday November 20th 2020.

ADVERTISEMENT

But the new rules introduced by the Central Bank of Nigeria on Monday November 30th, which allowed beneficiaries of diaspora remittances and foreign exchange transfers into domiciliary account, to collect the proceed in foreign currency cash, halted the dwindling fortunes of the naira.

ADVERTISEMENT

As result the naira gained N10 against the dollar yesterday (Tuesday December 1st) as the parallel market exchange rate dropped to N490 per dollar from N500 per dollar on Monday.

READ THIS
Jack Ma: Chinese billionaire founder of Alibaba missing

This trend continued this morning, howbeit on a larger scale, as the parallel market exchange rate further dropped to N470 per dollar from N490 per dollar yesterday, translating to N20 appreciation for the dollar.

READ THIS
NIN: FG approves mobile app for enrolment, improved slip, portal for download

Thus, the naira had reversed the N30 loss against the dollar since November 20th, 2020.

ADVERTISEMENT

The sharp appreciation of the naira according to Aminu Gwadabe, President Association of Bureaux De Change Operators of Nigeria (ABCON) shows the effectiveness of the new CBN rule receipt of diaspora remittances.

READ THIS
NIN: FG approves mobile app for enrolment, improved slip, portal for download

He said: “Certainly, those hoarding foreign exchange better sell now otherwise they will lick their wounds.”

ADVERTISEMENT

COMMENTS...