GTbank and Black Market Adjust Dollar Exchange Rate in Nigeria, Naira Shows Strength

In Nigeria, GTbank and black market traders have adjusted the exchange rate for the US dollar to 1 USD to 478 NGN, indicating strength. The official foreign exchange market started the week with the dollar trading at around 1 USD to 485 NGN in the parallel market, a slight fall from the previous rate of 1 USD to 478 NGN.

The British pound traded at 2.204 NGN, the euro at 1.754 NGN, and the Canadian dollar at 1.093 NGN. Despite recent interventions by the Central Bank of Nigeria (CBN) and the NAFEM appreciating against the dollar to 7.930.54 NGN, the naira closed at 1 USD to 456.56 NGN on Monday, compared to 1 USD to 464.49 NGN at the end of the previous week.

The local currency also strengthened against the euro, gaining 4.04 NGN to settle at 1 USD to 710.59 NGN. However, the naira marginally weakened against the pound sterling, slipping three kobo to close at 1 USD to 957.33 NGN.

The CBN's ongoing reform in the retail foreign exchange market has led to uncertainties, especially with the exclusion of several Bureau de Change (BDC) operators at the Murtala Muhammed International Airport in Lagos from the list of licensed BDCs published by the CBN. The apex bank has authorized BDCs to carry out operations following the withdrawal of licenses from firms that failed to meet recapitalization deadlines.