Naira Hits 385/Dollar in Parallel Market

The naira has continued to soar high in the last few weeks, following the intervention of the Central Bank in the foreign exchange market.

And according to forex experts, there are indications that the naira may gain more as the CBN narrows the gap between the interbank and parallel market rates.

At present, the naira has hit 385 to the dollar on the black market on Thursday, from 395 on Wednesday, and from 457 last Thursday.

On the official interbank market, the naira closed at 308 to the dollar, against 306 last Thursday.

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Commenting on this, President, Association of Bureau De Change operators, Aminu Gwadabe said that he foresees naira gaining more against the dollar due to the resilience of the CBN to push out more dollars into the interbank.

The increased dollar supply, no doubt may force it to be sold between 375/380 next week, a currency expert at Ecobank Nigeria, Mr. Kunle Ezun, said.

“It depends on what the CBN is targeting; but the good thing is that when the dollar sells for between 375 and 380, the incentive to do round-tripping will not be there anymore and this is good for the market, the economy and the country,” he added.

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It appears from fillers that the CBN will be injecting about $100 million to be sold in the next 60 days and this will make forex available for legitimate businessmen.

The local currency has been appreciating in recent weeks on the back of the continued and consistent interventions in the forex market by the CBN.

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