The Nigerian Naira witnessed a gain against the US Dollar on Friday, January 26, 2024, at the official foreign exchange market, closing at N891.90 to a dollar. This reflects a 1.02% appreciation in the local currency compared to the previous day’s close of N900.96, according to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The intraday high and low were recorded at N1421/$1 and N700/$1, respectively, indicating a considerable spread of N721/$1. Forex turnover at the end of the trading day stood at $100.97 million, signifying a 12.35% decrease compared to the previous day’s turnover.
In contrast, the naira maintained a flat position at the parallel forex market, where it was quoted at N1410/$1, consistent with the previous day’s rate. Peer-to-peer traders quoted the exchange rate at around N1422.98/$1.
It is noteworthy that ongoing efforts are being made to authorize the Association of Bureau De Change Operators of Nigeria (ABCON) to publicly display the black-market rates of the naira against the dollar on online platforms. ABCON President, Aminu Gwadabe, indicated that the association is proposing to regulators to allow BDCs to restart the public display of exchange rates. As part of the proposal, ABCON is upgrading the functionality of its existing website to compete with other platforms in the economy.
This move signifies a departure from the measures implemented by the former central bank leadership, which aimed to regulate BDC operations strictly and reduce the prominence of the unofficial market. In September 2021, the Central Bank of Nigeria targeted AbokiFX, a platform publishing black-market exchange rates for the naira online, accusing it of engaging in illegal activities that undermine the economy. The ban on AbokiFX led to other platforms, including Naijabdcs.com, owned by ABCON, ceasing the online publication of rates.
