Prime Business Africa
In the parallel market on Monday, the foreign exchange rate of the United States dollar (USD) decreased to N1,485 per $1, as the naira continues its rebound against the foreign currency.
The naira appreciated against the American greenback by 0.33 percent, with the foreign exchange rate between the two currencies dropping by N4.97 kobo, when compared to the N1,489.97 kobo reported on Friday, December 12.
Join our WhatsApp ChannelAccording to data provided by Naira Rates, a black market aggregator, the naira also maintained its ground against the pound, as the exchange rate for the British currency remained at N2,204.4 kobo per £1.
In the same vein, the euro traded flat against the Nigerian currency, trading at N1,853.7 per €1 in the parallel market, which is the same exchange rate reported by the aggregator on Friday.
The naira has strengthened in the black market amid the foreign exchange market reforms by the Central Bank of Nigeria (CBN) under Yemi Cardoso, the governor of the financial regulator.
CBN has reduced the number of bureau de change (BDC) operators in the parallel market by increasing the capital base requirement of BDC centres and directing the BDC operators to reapply for licences.
In a frequently asked questions (FAQs) on the reforms, CBN said it has categorised BDCs into two groups, tier 1 BDC, which is required to have N2 billion capital base, and tier 2 BDC, required to have N500 million.
“Tier 1 BDC: Can operate in any State and the FCT, and may establish branches and appoint
franchisees nationwide, subject to the approval of the CBN,” the apex bank said.
“Tier 2 BDC: Can operate within one State of the federation or the FCT, and is permitted to
establish up to 5 branches in its State of operation, subject to the approval of the CBN.”
Due to the reforms, the number of BDCs has dropped from 6,000 BDC centres in September 2023 to 82 centres.
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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.
