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Naira continues to gain against dollar

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Thing are gradually looking for Nigerian businesses as the naira has continued to appreciate significantly against the dollar. The naira appreciated on Wednesday to trade at N410 to the dollar.

The Nigerian currency gained N20 to exchange at N410 to the dollar from N430 posted on Tuesday. This sharp gain resulted in a huge loss for currency black marketers.

It also firmed against the pound sterling and the Euro as it was traded at N510 to the pound and 435 to the Euro from N530 and N450, respectively.

At the Bureau De Change window, the naira was sold at N400 to the dollar, while it closed to the pound sterling and the Euro at N530 and N465, respectively.

Transactions at the interbank market saw the naira closed at N307.75 to the dollar.

Traders expressed mix-feelings over the development in the market on Wednesday.

Mr. Yahya Mohammed, a trader, told the News Agency of Nigeria that the new development had raised his optimism that naira could sell for N350 against the dollar tomorrow (Thursday, March 23).

Meanwhile, the new development has put the BDC sub-sector into a very tight corner as some of their clients were no longer comfortable with the prevalent rate.

The President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, said BDCs were facing increasing resistance from their clients.

“Some of them insist they can only patronise us at N375 to a dollar,’’ Gwadabe said.

The Governor of CBN, Mr Godwin Emefiele, had on Tuesday, while briefing newsmen on the outcome of the Monetary Policy Committee (MPC) meeting in Abuja, said the apex bank was determined to see the convergence of rates at the foreign exchange market.

Emefiele said that the CBN was optimistic that the rate between the official and parallel market would converge further.

He also said that the bank could sustain the policy, adding that those who doubt the ability of the bank to take decisions and implement it were taking a great risk.

He noted that the nations’ foreign reserves were trending further to $31bn.

Emefiele had also warned speculators to desist from stocking dollars at home because the CBN intervention would crash the price of dollar, which was already happening.

The CBN had in the last few weeks injected about $1. 7bn into the foreign exchange market.



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