Inconsistent pricing and cautious optimism characterize the parallel market, where traders are grappling with the implications of the CBN’s new policies.
Despite the price disparity, a general consensus exists among traders that holders of foreign currencies are cautiously selling their holdings. This measured approach suggests a wait-and-see attitude, where market participants are gauging the long-term impact of the CBN’s actions. The Abuja foreign exchange market is currently in a state of flux. The combined effects of the CBN’s policy adjustments – increased dollar sales to BDCs and a higher interest rate – are yet to be fully understood. In the coming days and weeks, market participants will closely monitor exchange rates and adjust their strategies accordingly.