Jueves, 23 Marcha, 2017

CBN Naira to appreciate further as apex bank boosts forex sale

Currency dealers at work Currency dealers at work
Manuel Armenta | 21 Marcha, 2017, 01:35

THE naira appreciated further on the parallel market on Friday, closing the week at N450.00/US$1.00 stronger than the N453 to a dollar it closed the previous day.

This was due to the several interventions of the apex bank at the interbank end of the forecast market as well as increased supply of dollars to the bureau de change market clearance of more BDCs to access the global money transfer operators winfow.

The CBN sold a total of $150 million to authorised forex dealers in the interbank at the highest bid rate of N335/$1 and a marginal rate of N320/$1. Demand for dollars for these purposes has dropped to near zero.

Meanwhile, the CBN today intervened again in the foreign exchange market by selling $180 million comprising $100 in forwards transactions to be delivered in 60 days and $80 million for invisibles such as medicals, school fees and personal travel allowances.

In a statement, on Monday in Abuja, the CBN's acting Director, Corporate Communications, Mr Isaac Okorafor, said the wholesale requests will be settled on Tuesday, March 21, 2017.

Traders at the market said they were happy with the level of liquidity but appealed to the Central Bank of Nigeria (CBN) to sustain it to further reduce the gap between the official and parallel market rates.

Okorafor, who noted that the bank has since February 2017, supplied over $1 billion to the interbank market, maintained that stability has been restored to the market, with individuals now able to easily access forex.

This post was syndicated from Vanguard News.