Tuesday, 21 March 2017

Naira Continues To Appreciate Against The Dollar. See The New Rate.

The Naira, Tuesday, appreciated further to N420 per dollar in the parallel market prompted by
increased dollar supply and declining demand.

Investigations revealed that the parallel market exchange rate, which closed N430 per dollar on
Monday, dropped by N15, yesterday, to N420
per dollar. Consequently, the Naira has appreciated against the Dollar by N25 or 5.6
per cent, this week.

According to a Bureaux De Change (BDC) chief
executive, who spoke on condition of anonymity, the market is experiencing boost in
dollar supply due to the sustained intervention
of the CBN in the foreign exchange market.

Also confirming this development, President,
Association of Bureaux De Change Operators of
Nigeria (ABCON), Alhaji Aminu Gwadabe said
this trend will continue provided the apex bank
sustains its intervention in the interbank market.
He however urged the CBN to also consider
increasing weekly dollar sale to BDCs as well
as aligning the exchange rate at which they
purchase the dollar to the rate at which the
CBN sells to the banks. The CBN sells dollars
to BDCs at N381 per dollar while it sells to
banks at exchange rate ranging from N315 to
N360 per dollar.
Since Monday February 20th 2017, when it
announced new measures to boost dollar supply
and forestall the declining fortunes of the naira
in the parallel market, the CBN has injected
$2.26 billion by intervening in the forex market
11 times as follows: Tuesday February 21st,
$417 million; Thursday February 23rd, $231
million; Monday February 27th, $180 million;
Friday March 3, $350 million; Monday March 6,
N367 million; Tuesday March 7, $100 million;
Thursday March 9, $170 million; Tuesday March
14, $190 million; Wednesday March 14, $150
million; Thursday March 16, $100 million and
Monday March 20, $143 million.

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