Naira strengthened to N345 per US dollar at the parallel market on Tuesday, as against the exchange rate of N351 that it was sold on Monday when the market opened for the second week of the new foreign exchange regime operations.
The price of the Nigerian currency (Naira) at the parallel market yesterday indicated that the local currency gained a total point of N6 at the parallel market when the market closed for the day.
Forex traders said that they bought the dollar at the rate of N340, while selling at N345.
The pound sterling which has continued to deprecate sold at N455 and was bought at the rate of N450 at the parallel market.
However, the Central Bank of Nigeria (CBN) sold an undisclosed amount of hard currency on the interbank market to ease dollar shortages and provide importers the dollars to pay for the products they bring into the country, traders said on Tuesday.
The naira ended at N282.50, slightly weaker than the 281 naira to the dollar it first traded at on Tuesday, more than three hours after market opened at about 8: am on Tuesday morning.
The CBN has been selling dollars on the interbank market since it ended its 16 month-old currency peg last week, and it sold again on Tuesday, asking currency traders for bid-offer quotes. But reports have it that a total of $51 million traded on the interbank market just before the market closed, which traders attributed to apex lender’s participation.
According to reports, the CBN on Monday introduced an Over-The-Counter (OTC) futures market for the currency, to help manage dollar demand, quoting the naira firmer at N279 to the dollar in a month’s time and at N210 naira by April next year.
President Muhammadu Buhari on Monday said he did not see any benefit that the country could derive from the devaluation of the naira. This is despite the implementation of the flexible exchange rate policy, which financial experts have referred to as a technical devaluation of the nation’s currency.
Following the floating of the naira and the adoption of a single structure through the interbank/autonomous window, the currency closed last week at N281 to the greenback at the official market.