The naira closed stronger at both the parallel and interbank markets yesterday, after the Central Bank of Nigeria sold foreign currency to further ease the pressure at the foreign exchange market.

The CBN had last week sold dollars at the interbank market bringing the value of the naira to N308 to the greenback and traders said the apex bank had once again intervened yesterday after the interbank market recorded no trade for four hours after the day’s trading began.

Traders said the apex bank selectively sold dollars to commercial lenders just before the market close. “The central bank came to the market toward the close, and sold dollars to only few banks, which helped to support the naira,” a trader said.

Having lifted the 16 month peg on the foreign exchange rate in June to allow a more flexible exchange rate, the central bank has been selling dollars almost daily to boost liquidity and support the naira.

It had also recently allowed Bureau de Change operators access foreign exchange from banks after it stopped selling forex to them at the beginning of the year. From the initial $30,000 weekly purchase, it last week increased it to $50,000 for each BDC.

Credit:

http://leadership.ng/business/547337/naira-firms-as-cbn-sells-dollars-to-ease-pressure