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Naira yesterday appreciated in value against the dollar at the interbank spot FX market after the Central Bank of Nigeria (CBN) sold some greenback to some deposit money banks.
Consequently, after trading yesterday, the naira gained N1.90k as it closed at N316.24 against the dollar. This represents 0.60 percent appreciation compared with N318.14 it closed the previous day at the interbank spot market, data from FMDQ show.
But at the parallel market, it fell to a record low of N423/$ yesterday, which was 2.42 percent loss compared with N413/$ the previous day, BusinessDay findings reveal.
However, all hope is not lost for the naira to get back to its feet following the restoration of eight banks to FX trading and the issuing of operating licence to 11 new International Money Transfer Operators (IMTOs) by the CBN.
Aminu Gwadabe, acting president, Association of Bureau De Change Operators of Nigeria (ABCON), said giving room to more IMTOs would make dollar available to banks.
“The central bank’s directive that commercial lenders should sell dollar inflow through money transfer operators to bureau de change has boosted daily dollar supply to the currencies agencies to around $10-$20 million, and this could further boost supply and help support the naira,” Gwadabe said.
Nigeria’s foreign exchange reserves fell to $25.45 billion by August 29, down 2.86 percent from the previous month, central bank latest data showed on Wednesday, as the bank stepped up support for its ailing currency.
Dollar reserves of Africa’s largest economy stood at $26.20 billion in end of July. The central bank data showed reserves had declined 18.9 percent from a year ago, Reuters report.
The NBS said on Wednesday that GDP contracted by 2.06 percent after shrinking 0.36 percent in the first quarter.
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