The
intervention of Central bank of Nigeria by the injection of more
foreign currency to the economy through the interbank and Bureau de
Change Forex market, has significantly improved the value of the
nation's currency.
The value of the naira firmed at the parallel market yesterday
after the Central bank of Nigeria pumped more dollars to the economy
through the interbank and Bureau de Change ends of the foreign exchange
market. The naira’s value rose by over 3.75 per cent to N385 per dollar
yesterday, up from N400.
Increased dollar sales by the apex bank particularly to the BDC
operators had cut back demand pressure on the naira. The CBN this week
had increased the amount of dollars it sells to the BDC operators from
$20,000 per week to $40,000 per week, having sold an initial $20,000 on
Tuesday and another $20,000 on Thursday.
It had also put $380 million into the interbank market to meet
forwards, spot and invisibles demand as well as demand by small
businesses on Tuesday offering $100 million in wholesale 7-45 days
forwards while invisibles such as Basic Travel Allowance, Personal
Travel Allowance, medical bills and tuition received $80 million.
The CBN also sold $100 million through the Small and Medium
Enterprises (SMEs) window. The apex bank on Wednesday had offered $100
million at the interbank market but banks were only able to take up $68
million as they ran out of naira.
Traders at the parallel market said demand for the greenback had
declined pushing down the value of foreign exchange on the streets. The
British Pound was also down to £495 to the naira from £503, while the
Euro declined to €410 from €433 which it sold on Wednesday.
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