The naira appreciated to N1,280 per dollar at the parallel section of the foreign exchange (FX) market on Friday, representing a 5.19% increase from the N1,350/$ reported on March 27. Currency traders in Lagos, also referred to as Bureau de Change (BDCs) operators, quoted the buying rate of the US dollar at N1,260 and the selling price at N1,280, which leaves a profit margin of N20. However, the fall in the price of the dollar and other major currencies is affecting their business as some customers prefer to keep their currencies than change them with them, according to a currency trader, Aliyu.
Over the years, currency exchange rates have had a significant impact on the pricing of vehicles in Nigeria. Recently, prices of used cars, commonly referred to as Tokunbo and even new cars have skyrocketed up to a 100% increase. For instance, the Toyota Corolla 2006 model was previously priced at N3 million to N4 million for the Tokunbo version, while locally used or Nigeria used was priced at N1.5 million to N2.5 million. Now, a Tokunbo used model is priced at N6.3 million, while Nigeria used is at N4 million.
However, with the appreciation of the naira and the Custom Exchange Rate currently at N1303.842/$ as of today, March 30th, lower than the previous weeks, prices of cars may reduce, but not very quickly.
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