Naira Recovers, Exchanges For 420/$

The Naira seems to have bounced back, as it exchanged to the dollar at the parallel market at N420/$ on Wednesday.

The improved exchange rate came as a direct result of the interventions made by the Central Bank of Nigeria in the Investors and Exporters window.

Prior to CBN’s intervention the naira exchanged for as high as N480 to the dollar, as the apex back further stated that it would also resume the sale of foreign exchange to operators of Bureau de Change from September 7.

Speaking on the issue in a statement entitled, “Forex: Speculators set to count losses,” the Director, Corporate Communications Department at the CBN, Isaac Okorafor, said the bank had concluded plans to inject liquidity into the foreign exchange market by selling forex to licensed BDC operators.

He said the sale to BDCs would be gradual and be done twice a week, Mondays and Wednesdays, and that the BDCs had been directed to ensure that their accounts with their banks were adequately funded to ensure seamless transactions.

Meanwhile, the President of the Association of Bureau de Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe has expressed support for the CBN action, noting that the anticipated intervention in the BDC sector would ensure stability in the foreign exchange market.

According to him, speculators in the forex market have been dealt a huge blow with the sharp drop in the exchange rate, which he said would continue a downward trend with the resumption of international flights in and out of the country.

It will be recalled that the CBN, in a circular signed by its Director, Trade and Exchange Department, Dr. Ozoemena Nnaji, on Thursday, August 27, 2020, had disclosed plans by the CBN to resume the sale of foreign exchange to BDCs as part of effort to enhance accessibility to foreign exchange.