Naira appreciates by 5.2% against Dollar this week
-O.S David
Good news this week as Nigerian naira recorded 5.19 per cent at the Bureau De Change, BDCs, market this week, following interventions in the foreign exchange market with dollars by the Central Bank of Nigeria.
It was discovered that the currency firmed up at parallel market on Friday trading at N385 to the United States Dollar in Lagos, Abuja and Kano.
Recall that the Naira was sold at over N405 to $1 as for Monday this week, but suddenly recorded a boost
There were indications that the appreciation of the Naira was as a result of policy actions of the CBN to inject more foreign exchange into the financial system, specifically targeting critical sectors in addition to special interventions in the areas of SMEs and BDCs.
According to the Apex bank, the Naira is expected to appreciate further when the BDCs receive another tranche of $20,000 purchases from the CBN from the week.
In a bid to sustain the supply of liquidity to the foreign exchange market, CBN made special interventions by simplifying the documentation process for the SMEs to enable them to import eligible items and also increased both the amount and number of sales to the BDCs. Appreciate gain
