Naira continued its impressive form against the dollar at
the weekend as it exchanged at N365 to the greenback.
The local currency had closed at 367/dollar on Friday, after
closing between 367/dollar and 368/dollar for most days of last week.
Naira had closed at 371/dollar the previous week, after
rising to 374/dollar from 382/dollar.
The strong showing is not unconnected with steady
intervention by the Central Bank of Nigeria, CBN, targeted at narrowing the
spread between the official interbank and black markets.
The CBN has sold over $4bn since February, improving dollar
supply and providing support for the Naira.
Last Monday, CBN injected another $190 million into the
market.
Acting director, Corporate Communications, CBN, Isaac
Okorafor, had in a statement, said $100 million was offered as wholesale
interventions and $50 million was allocated to the Small and Medium Enterprises
(SMEs) FOREX window.
He said $40 million was also allocated to accommodate
customers requiring FOREX for business, Personal Travel Allowances, tuition and
medical fees.
Mr. Okorafor said Naira had made tremendous gain against the dollar in recent
times.
He said FOREX rates at both the inter-bank and BDC segments
had almost converged, prompting even greater optimism that the value of the
Naira would continue to spike.
Okorafor observed that by ensuring transparency in the
market as well as fairness to end-users, the CBN had further exposed
speculators and checkmated them.
The official urged all dealers, particularly licensed BDCs,
to continue to play by the rule, adding that the CBN would not hesitate to
wield the big stick against any erring bank or dealer.
Okorafor said the CBN had also released new guidelines to
further develop the foreign exchange market and improve its structure.
“The new circular, among other provisions, allows authorised
dealers to sell their excess foreign currency to other authorised dealers
without seeking prior approval from the CBN,” he said.
By Wale Odunsi
