Naira Watch - Naira Rises to N380/$

AllAfrica |

The naira Thursday appreciated by $5 to N380 per dollar in the parallel market due to improved dollar supply and decline in demand for dollars.

Vanguard survey of the parallel market revealed that the parallel market exchange rate, which opened the week at N405 per dollar and dropped to N385 per dollar on Tuesday, dropped further to N380 per dollar yesterday, translating to N5 appreciation for the naira

Consequently, the naira has gained N20 or 4.9 per cent this week in the parallel market.

Bureau De Change sources attributed the appreciation to the increased dollar supply to the segment from the Central Bank of Nigeria (CBN).

On Tuesday, the CBN sold $20,000 to each BDCs, up from $10,000 the previous week. The apex bank is expected to further sell $20,000 to each of the 3,185 BDCs today, thus boosting dollar supply.

This, according to President, Association of Bureaux De change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, will prompt further appreciation of the naira before the close of business today.

The increase dollar supply to BDCs is part of the apex bank's intervention in the foreign exchange market aimed to addressing the wide gap between the interbank exchange rate and the parallel market exchange rate.

Since , when it commenced the intervention, the apex bank

has injected $3.63 billion by intervening in the forex market 19 times as follows: , $417 million; , $231 million; , $180 million; , $350 million; , N367 million; , $100 million; , $170 million; , $190 million; , $150 million; , $100 million,

, $143 million; , $100 million; , $185 million; , $100 million; , $240 million; , $100 million; , $100 million; , $250 million and $280 million on .

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