Nigeria’s currency on Wednesday strengthened against the dollar by 0.12 percent amid low liquidity at the Investors and Exporters (I&E).

The daily foreign exchange market turnover declined by 59.05 percent to $21.92 million on Wednesday from $53.53 million recorded on the previous day.

Consequently, after trading on Wednesday the naira/dollar exchange rate closed at N410.50k as against N411.00k it closed on Tuesday at the I&E window.

Currency traders who participated in the trading on Wednesday maintained bids at between N392.00k and N422.00k/$, according to data from the FMDQ.

Exchange rate remained flat at N482 at the Bureau De Change (BDC) segment of the foreign exchange market and at the parallel market.

Aminu Gwadabe, president, Association of Bureau De Change Operators of Nigeria (ABCON), said the huge gaps between the fixed exchange rates and the flexible exchange rates in the market serve as an incentive for arbitrage and use of unlicensed channels for huge diaspora inflows.

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This gap should be bridged to discourage those profiting from it, Gwadabe said at a zoom meeting organized by ABCON for critical industry stakeholders to deliberate on issues needed to move the industry forward.

Also, he noted that the BDCs sub-sector has generated over 20,000 employment for Nigerians and will continue to promote exchange rate stability, education on fake currencies and boosting market liquidity.

The foreign currencies dealt in by a BDC are derived from private sources and such other sources which may include the CBN window as determined by the CBN from time to time for the purpose of funding Business Travel Allowance (BTA), Personal Travel Allowance (PTA), School Fees Payment Abroad, Medicals, mortgage and subscriptions.

The BDCs also access dollars from other autonomous sources such as Diaspora Remittances, walk-in customers and bank sources.

As a key player in the BDC industry, ABCON has for decades made several commitments to ensure that the sector continues to thrive against all odds.

“We are happy to announce that the licensed BDCs subsector is commanding N1 trillion annual turnover in the economy,” Gwadabe said.

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.

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