Ahead of the Yuletide season, Naira gains against the dollar at parallel market for N565/$1.


Ahead of the Yuletide season, the Nigerian naira has gained marginally against the US dollar at the parallel market to trade at N565 per dollar.

Going by this figure, it is N5 or 0.9 percent higher than the N570 it traded last week.

According to The cable, the Street traders across forex markets in Lagos who spoke on Wednesday quoted the naira at N565 to a dollar.

It would be recalled that the CBN has consistently maintained that the parallel market represented less than one percent of foreign exchange (FX) transactions and should never be used to determine Nigeria’s naira/dollar exchange rate.

The recent dip in the naira has affected the country’s foreign reserves have dipped by $53 million in the last 20 days.

Ahead of yuletide, it is expected that the Central Bank of Nigeria (CBN) will intervene at the forex market by pumping more dollars to avert a sharp fall

According to data on the CBN website, foreign reserves dropped from $41.1 billion at the beginning of December to $40.6 billion as at December 20.

On the official market side, the naira appreciated by 0.02 percent to open at N414.04 to a dollar on Wednesday, according to data on FMDQ OTC Securities Exchange, a platform that oversees official foreign-exchange trading in Nigeria.

Following the halt in FX sales to Bureau De Change operators (BDCs), the CBN has continued to channel weekly allocations of dollar sales to commercial banks to meet legitimate FX demands.

Also, The Economic and Financial Crimes Commission (EFCC) had warned banks against selling foreign currencies to customers with no intention of travelling outside the country.

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