7 June 2017

Nigeria: Naira Gains Seven Points Against Dollar After CBN Intervention

The Naira on Tuesday appreciated to N363 per dollar in the parallel market.

Naira dropped to N363 per dollar from N370 per dollar on Monday in an impressive 7-point gain.

Analysts attribute the development to a combination of weak demand and increased dollar supply.

Another factor was Monday's injection of another $190 million into the market by the Central Bank of Nigeria (CBN)

The acting director, Corporate Communications, CBN, Isaac Okorafor, had in a statement, said $100 million was offered as wholesale interventions and $50 million was allocated to the Small and Medium Enterprises (SMEs) FOREX window.

He said $40 million was also allocated to accommodate customers requiring FOREX for business, Personal Travel Allowances, tuition and medical fees.

Mr. Okorafor said Naira had made tremendous gain against the dollar in recent times.

He said FOREX rates at both the inter-bank and BDC segments had almost converged, prompting even greater optimism that the value of the Naira would continue to spike.

Okorafor observed that by ensuring transparency in the market as well as fairness to end-users, the CBN had further exposed speculators and checkmated them.

He, therefore, urged all dealers, particularly licensed BDCs, to continue to play by the rule, adding that the CBN would not hesitate to wield the big stick against any erring bank or dealer.

Okorafor said the CBN had also released new guidelines to further develop the foreign exchange market and improve its structure.

"The new circular, among other provisions, allows authorised dealers to sell their excess foreign currency to other authorised dealers without seeking prior approval from the CBN," he said.

Nigeria

Activist Wins Prestigious Award for Aiding Victims of Boko Haram

Nigerian activist, Rebecca Dali has won the prestigious Sergio Vieira de Mello Foundation award for her work in… Read more »

Copyright © 2017 Leadership. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 900 reports a day from more than 150 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.