The Naira has appreciated at the parallel market in spite of the rise in the nation’s foreign reserves. The Nigerian currency gained 15 points at the parallel market to exchange at N495 on Thursday after closing at N520 three days ago.
It also appreciated against both the Pound Sterling and the Euro by exchanging at N615 and N530, respectively, as against the N626 and 537 traded in the last 72 hours, reacting however to the recent interventions by the Central Bank of Nigeria.
At the interbank or the official rates the Naira exchanged at N305.25 to the dollar while One British Pound exchanged for N378.75 as at February 21, 2017.
The Central Bank of Nigeria has recently carried out a wholesale intervention in the interbank foreign exchange market with the release of $370.8m to 23 Deposit Money Banks.
The amount was to meet the requests of customers. The move was sequel to the apex bank’s promise to ease the difficulties encountered by Nigerians in obtaining funds for foreign exchange transactions.
The CBN Spokesperson Mr Isaac Okoroafor stated that while seven banks received full allotments of their respective bids ranging from $315 to $360 valued at $37.5m each, other received allotments ranging from $46,512.50 to $15,578,081.51.
Okorafor said the CBN’s intermediation in the forex market was the first wholesale intervention aimed at easing the pressure of access to forex on Nigerians who intend to meet obligations that fall under visible and invisible needs categories.
He further explained that the CBN offered $500m for sale to the banks, but not all of them provided enough naira backing to pay fully for their respective bid amounts.