Naira appreciates against Dollar as CBN injects $482million into the forex market

The Naira, on Tuesday, appreciated to N375 per dollar in the parallel market due to weak demand for the dollars.

Meanwhile the CBN intervened in the inter-bank foreign exchange market by selling $482.6 million.

Acting Director, Corporate communications Department, CBN, Mr. Isaac Okoroafor confirmed this in a statement.

He said: “A breakdown of Tuesday’s interventions indicates that the Retail SMIS was allocated the sum of $285,779,350, while the $100 million was offered in the Wholesale SMIS auction window. The Small, Medium and Enterprises (SMEs) window got an allocation of $52 million, while the invisibles segment, comprising Basic Travel Allowance (BTA), Personal Travel Allowance, medicals and tuition fees, among others, was allocated the sum of $45 million.”

The parallel market exchange rate, which rose by N7 to N382 per dollar at the close of business last week, dropped to N375 per dollar on Tuesday, translating to N7 appreciation. Bureaux De Change operators attributed the appreciation to lull in market activities

The appreciation is driven by expectation of boost in dollar supply as the Central Bank of Nigeria (CBN) will on Wednesday sell $20,000 to each of the 3,145 approved BDCs in the country.

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