Standup9ja - Naira Gains
On Parallel Market, Trades At ₦501/$ From ₦525/$
The naira on
Wednesday gained significantly against the United States dollar as it settled
at N501 to the dollar, stronger than N515/$ from the previous day and N525/$ on
Monday.
The
significant appreciation of the local currency may have been made possible via
the new foreign exchange policy actions introduced by the Central Bank of
Nigeria (CBN).
It is also
understood that the buy rate for the greenback crashed on the parallel market
yesterday to below N490 to the dollar, as foreign currency speculators who had
held on to the dollar for several weeks rushed to sell off the currency in the
wake of renewed confidence in the CBN’s ability to meet demand on the interbank
market.
Global
ratings agency, Fitch Ratings, on Wednesday averred that the new policy actions
announced by the CBN, might ease some of the severe foreign currency liquidity
pressure faced by banks in the country, This Day reports.
The CBN also
indicated its intention to increase intervention in the FX interbank market to
increase supply and reduced the maximum waiting time for banks to take delivery
of foreign currency through its forward sales contracts to 60 days from 180.
The first of
these forwards amounting to $500 million was offered by the central bank on
Tuesday, but 23 banks were only able to buy $371 million in one-month and
two-month forwards.
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