TheCable

The naira, on Friday, depreciated to N1,600 per dollar at the parallel section of the foreign exchange (FX) market.

This represents a 1.91 percent decline compared to the N1,570/$ reported on March 13.

Currency traders in Lagos, also known as bureau de change (BDC) operators, quoted the buying rate of the dollar at N1,580 and the selling price at N1,600 — leaving a profit margin of N20.

At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the country’s official window, the naira appreciated by 0.38 percent to N1,602.75/$ — from N1,608.98/$ on March 14.

Meanwhile, the Central Bank of Nigeria (CBN), on March 14, reiterated banks must not utilise gains from foreign currency revaluation to pay dividends and expenses.

“Further to our letter dated September 11, 2023, referenced BSD/DIR/CON/LAB/16/020 on the above subject, the Central Bank of Nigeria wishes to reiterate that banks are required to exercise utmost prudence and set aside FCY revaluation gains as a counter-cyclical buffer to cushion any adverse movements in the FX rate,” CBN said.

“In this regard, banks shall not utilize such FX revaluation gains to pay dividends or meet operating expenses.”

CBN had issued guidelines on September 11, 2023, on how banks can manage the impact of FX reforms.