Naira Bounces Back, Appreciates To N470/$ In Parallel Market

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In what will come across as good news to Nigerians, the this morning reversed its two weeks loss to the dollar in the parallel market.

According to Vanguard, the appreciated by N20 to N470 per dollar.

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

But the new rules introduced by the Central Bank of 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.

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 Monday.

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.

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

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

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

Commeting further on how the new rule will impact dollar supply and the activities in the BDC subsector, Gwadabe said: “The monopoly of (banks) is broken and the policy will induce liquidity in the BDC subsector.

is true that the volume of diaspora remittances amidst COVID-19 19 is huge. In fact, countries like and Zimbabwe are recording higher diaspora remittances inflow as a result of skillful medical abroad.

is expected to close the year with $20 diaspora remittances despite the pandemic in 2020.

“The beneficiary is free to collect his proceeds in foreign cash currency and in the BDC subsector which will lead to true equilibrium in the market.”