BDC Traders Quote New Exchange Rate for Dollar, Pound, Euro in Forex Markets

• BDC traders are selling the U.S. dollar at a new exchange rate as the naira appreciated ahead of the Democracy Day celebrations in the official market
• The dollar remains slightly above N1,500 in the black market, while some fintech platforms are selling above N1,600
• The Central Bank of Nigeria is expected to intervene in the forex markets following the increase in foreign reserves

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Bureau De Change (BDC) operators in Nigeria have quoted new exchange rates for the U.S. dollar, British pound, and euro as the country marks Democracy Day.

Traders who spoke to Legit.ng revealed that the dollar currently sells for N1,502 in the black market, also known as the parallel market, as of Wednesday, June 12, 2024.

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The new rate indicated a slight depreciation compared to the N1,480/$1 quoted on Tuesday, June 11.

Meanwhile, for the British pound, the street traders sold at N1,880 on Wednesday, and the euro exchanged at N1600.

On some fintech platforms, such as Chipper Cash, a dollar was sold above N1,650 at the time of this report.

A BDC trader, Musa Lawal, along Airport Road, Lagos, told Legit.ng that the new exchange rate reflected the current market level.

He said:

"For some time now, the CBN has not sold dollars to BDCs, and what we sell is what we source ourselves from the market.

"We fix our rates based on the demand and also the customer. For example, for my regular customer, I can sell the dollar at N1,500 or even N1,490 to keep him happy, but for a new customer, it depends on the negotiating power and the amount he or she is trying to buy or sell."

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Naira value rises at the official market

Legit.ng earlier reported that the value of the Nigerian currency, the naira, closed strong against the dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM).

According to data from FMDQ Securities, the naira closed at N1,473.66 on Tuesday, in contrast to the preceding day’s N1,483.62/$1.

The official market is closed on Wednesday due to the public holiday.

CBN’s foreign reserves rise by over $300m in 10 days

Earlier, Legit.ng reported that the foreign reserves had increased significantly in the first ten days of June.

The rise in FX reserves will give CBN more firepower to intervene in the forex market and ensure the stability of the naira exchange rate.

Dollar supply has always been a major reason for naira depreciation due to demand pressure from companies and travellers.

Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.

Source: Legit.ng