The Nigerian currency, Naira, mounted a comeback against the United States Dollar on Wednesday at the parallel market, popularly called the black market.
According to the black market operators, popularly called ‘Abokis, ‘ they buy dollars at the rate of N1400/$1 from holders of dollars looking to sell the currency.
The price drop is said to have been induced by speculators’ readiness to start dumping their hoard of dollars following reduced demand from members of the public.
Multiple sources which operate in the parallel market, as quoted by Naira Metrics, revealed that the naira has risen from around N1600/$, which it closed yesterday to N1500/$ (some quoted N1550/$1) if they are to sell to you.
However, they buy at N1400/$1 allowing them to make a spread of N100/$1.
A trader named Musa said, they are also happy with the development, as a stronger Naira was also good for their business.
Meanwhile, the exchange rate on the official market fell to N1,560/$1 on Tuesday the strongest the naira has traded since the 4th of March when it closed at N1534/$1.
Olaitan Ibrahim