The naira depreciated in the parallel segment of the foreign exchange (FX) market on Monday. At the Lagos street market, currency traders, known as bureau de change (BDC) operators, quoted the naira at N1,520 to the dollar. The traders set the buying price at N1,490 and the selling price at N1,520, resulting in a profit margin of N30. This marks a decline of N10 or 0.66 percent from the N1,510/$ traded on May 24.
Conversely, in the official market, the naira appreciated by 9.6 percent or N143, reaching N1,339.33/$ on Monday from N1,482.81/$ on May 24. According to FMDQ Exchange, which oversees official FX trading in Nigeria, the highest exchange rate during trading hours was N1,501/$, and the lowest was N1,310/$. A daily turnover of $180.80 million was recorded at the official window.
The Association of Bureau De Change Operators of Nigeria (ABCON) stated on May 23 that the naira's weakening is driven by unearned income chasing the local currency, rather than a surge in demand for the dollar. Aminu Gwadabe, president of ABCON, attributed the naira's depreciation to corruption, not the activities of BDCs.