Naira Appreciates To 374/$ As CBN Continues Intervention

The naira appreciated to 374 per United States dollar at the parallel market on Thursday, up from 382/dollar on Wednesday, May 31, 2017.

This is after the local currency had settled at 382/dollar from Monday to Wednesday.

Naira Remains Stable As FX Reserves Shed $493.7million In 3 Weeks

The gain is coming at a time when currency analysts expect the naira to be stable across the board in the near term on increased dollar supply to both the official interbank window and the black market.

The local unit has been trading around 382/dollar on the black market in the last two weeks, while at the interbank market the naira was trading at around 305.40 per dollar.

The Central Bank of Nigeria (CBN) has also been intervening on the official market to try to narrow the spread between the official interbank and black markets.

Reuters reports that the apex bank of Africa’s largest economy has sold over $4bn since February, improving dollar supply and providing support for the naira.

On the back of sustained dollar injection by the CBN, the local unit has been showing resilience against the greenback.

Nigeria’s Economy Bleeds As CBN Pursues Elusive Naira Stability

The CBN has also injected $100m, $205m and $457.3m respectively into various segments of the forex market in the past three weeks.

Currency analysts said the creation of the “Investors & Exporters FX Window” by the CBN was a right move, adding that it had helped to narrow the gap between the official and parallel market rates of the local unit.

They, however, stressed the need for the unification of the various exchange rates by the central bank.

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