FOREX: Traders lose as naira rebounds to N703/dollar

The naira has appreciated and sustained its momentum at the parallel market, appreciating N703 per dollar in Kano on Friday.

The development is compared to the N810 to a dollar it traded on Wednesday.

Bureaux De Change operators (BDCs) at Wapa, Fagge local government area of Kano who spoke to SOLACEBASE, on Friday quoted the buying rate of the greenback at N698 and the selling price at N703 per dollar, leaving a N5 profit margin.

The traders said there was moderation in demand for dollars by citizens.

One of the traders in the market, at Wapa, Adamu Danjuma told SOLACEBASE that earlier in the morning, the dollar was selling for N718 but shortly after the Friday congregational prayer, (Jumu’at Service).

Asked by SOLACEBASE why the crash in the price of dollar, Danjuma said it is a simple situation of demand and supply.

‘’You see the market is doll because the demand for dollar has reduce drastically compared to some days back. As I speak to you now, so many of us have dollars but no customers as it was over a week ago,‘’ Adamu Danjuma said.

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”It is a volatile market where you can hardly predict the next action in the next moment.”

Similarly, a currency trader at Bompai road, opposite Central Hotel, Nura Baba, said he is currently buying the local currency at N700/$ and selling it for N707 per dollar on Friday.

Baba said most of them were recording losses because they had bought the dollar at about N800 but now have no choice but to sell for a lower amount.

However, the naira was exchanged for N710 per dollar, at the parallel market, in Lagos on Friday.

At Ikeja area of Lagos, the Bureaux De Change operators (BDCs) by the dollar at N700 and the selling price stood at N710 per dollar, leaving a N10 profit margin.

Recalls that last week, the naira weakened to almost N900 per dollar, pressured by the planned currency redesign by the Central Bank of Nigeria (CBN) and the subsequent Economic and Financial Crimes Commission (EFCC) clampdown on Foreign exchange dealers.