Naira Appreciates in the Black Market...See Current Value

The efforts of the apex bank of Nigeria to fix the faltering value of the naira has continued to pay off following recent results at the black market. The naira Thursday appreciated to N389 per dollar in the parallel market following dollar sales to bureaux de change (BDCs) by the Central Bank of Nigeria (CBN). The apex on Wednesday sold $20,000 to each of the over 3000 BDCs in the country, boosting dollar supply for retail forex transactions. As a result the parallel market exchange rate dropped from N391 per dollar to N389 per dollar.

Confirming this to Vanguard, President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Gwadabe said that BDCs have already paid to purchase another $20,000 from the CBN which would be delivered today, expressing optimism that the supply will further enhance the appreciation of the naira against the dollar. Meanwhile, the CBN said that banks and other authorized dealers have again failed to fully subscribe to the $150 million it offered yesterday. It stated that the dealers could only pick the sum of $43.5 million, which represents 29 per cent of the $150 million offered for subscription in the wholesale segment of the foreign exchange market.

Confirming this development, the apex Bank’s spokesman, Isaac Okorafor, reaffirmed the Bank’s position to sustain the intervention with a view to making foreign exchange available for all genuine transactions eligible for foreign exchange through the CBN window. Mr. Okorafor also allayed the fear over the dwindling subscription by authorized dealers noting that the development merely goes to confirm the extent of liquidity in the foreign exchange market and the determination of the CBN to sustain the intervention aimed at ensuring stability in the market.