The naira firmed up at both the parallel and interbank markets on Monday, August 22 after the Central Bank of Nigeria, CBN, sold dollars to further ease up the pressure of demand.
The apex bank had last week sold dollars at the interbank market bringing the value of the naira to N308 against the U.S dollars.
According to traders, 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 CbN selectively sold dollars to commercial lenders just before the market close.
A trader said: “The central bank came to the market toward the close, and sold dollars to only few banks, which helped to support the naira.”
The apex bank has been selling dollars almost daily to boost liquidity and support the naira after lifting the 16 month peg on the foreign exchange rate in June to allow a more flexible exchange rate.
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.
