NAIRA NOW 380 IN PARALLEL MARKET. TREND TO CONTINUE. THE NAIRA ON THURSDAY WAS SOLD AT N390 TO A DOLLAR AT THE PARALLEL MARKET.THE ATTACHED TABLE SUGGESTS THIS IS BECOMING A PATTERN THAT IS LIKELY TO CONTINUE. THE NIGERIAN NAIRA IS EXPECTED TO STRENGTHEN FURTHER IN THE BLACK MARKET IN THE COMING DAYS WITH THE CENTRAL BANK INTERVENING IN THE FOREIGN EXCHANGE MARKET TO NARROW THE GAP BETWEEN THE OFFICIAL AND PARALLEL MARKET RATES.
Currency traders expressed the hope that the continuous appreciation of the Naira would affect the economy positively. The Association of Bureau De Change Operators of Nigeria (ABCON) urged the Central Bank of Nigeria (CBN) to loosen its policies on foreign direct inflow and Diaspora remittances as part of efforts at rate convergence. ABCON President, Alhaji Aminu Gwadabe said that recent development in the FOREX market had made it important for the CBN to review the rate at which it sells FOREX to BDCs.Daily Black Market Rates Based on Lagos Locations. Rates may vary based on location.
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Gwadabe explained that a fair playing ground for all operators at the FOREX market was needed for the CBN to achieve its goal for rate convergence at the market.
“WE SEE THE EXCHANGE RATE CONVERGING AT SOME POINT BETWEEN 380-400 NAIRA TO THE DOLLAR IN THE NEAR TERM BECAUSE OF THE DETERMINATION OF THE CENTRAL BANK TO INCREASE DOLLAR SUPPLY.”
The West African nation has at least five exchange rates – the official one, a rate for Muslim pilgrims going to Saudi Arabia, the one for school fees abroad and a retail rate set by licensed exchange bureaus.
Mr Godwin Emefiele, Governor of CBN, had on Tuesday, said the apex bank was determined to see the convergence of rates at the foreign exchange market.
Emefiele said that the CBN was optimistic that the rate between the official and parallel market would converge further. The CBN had in the last few weeks injected about &1.7 billion into the foreign exchange market. Nigeria’s central bank plans to sell $100 million in currency forward contracts to be delivered within the next 60 days.
He also said that the bank could sustain the policy, adding that those who doubt the ability of the bank to take decisions and implement it were taking a great risk.
He noted that the nations’ foreign reserves were trending further to 31 billion dollars.
Emefiele had also warned speculators to desist from stocking dollars at home because the CBN intervention would crash the price of dollar, which was already happening.