Naira Now 380 Dollar, Pound N450 in BlackMarket
The values of foreign currencies have continued to diminish against the Naira as the Nigerian currency was traded at N380 to the US Dollar and N450 to the Pound Sterling at the parallel market on Friday in Abuja.
The Economic Confidential gathered that as the Naira sustained its bullish ride against major currencies, there is apprehension among speculators, who anticipate further losses given the continued crash of the dollar. The optimism of the CBN Governor, Godwin Emefiele to achieve the convergence of Forex rates between the Interbank and the BDCs markets appears to gain more ground.
The last time the Naira traded at between N390 and N400 to the dollar at the parallel market was in August 2016. The Central Bank has auctioned about $2 billion through forward sales as well as targeted intervention for invisibles.
Meanwhile the Central Bank of Nigeria (CBN) concluded transactions FOREX wholesale auction on the sum of $100 million earlier offered at the interbank market to meet customers’ demands, out of which authorized dealers were only able to pick $81.347 million after an initial bid for $91 million.
Commenting on the offer, the Spokesperson of CBN, Isaac Okorafor, attributed the inability of authorized dealers to pick up the entire offer of the CBN to increasing dollar supply and sense of apprehension among dealers who anticipate a further crash in the rate of the dollar.
He reiterated the determination of the Bank to sustain its current interventions in the market. According to him, “those who doubt the capacity of the Bank to sustain the intervention in the FOREX market are beginning to have a change of mind”.