Naira Hits N197.50 at Interbank Market As Parallel Market Rate Continues to Fluctuate

The naira traded around the pegged rate on the official interbank market on Thursday, May 26, at N197.50 to the dollar but is quoted at N350 on the black market.

One-month non-deliverable forwards (NDFs) showed the naira trading at N266 naira per dollar, after hitting N276 naira per dollar on Wednesday.

However, the currency parallel market reduced in value, with the naira closing at N350 on Wednesday from N346 to the dollar, as traders were confused over how the new rules would be implemented.

The Acting President of Bureau De Change Operators, Aminu Gwadabe said the CBN settled dollar bids submitted last week at its pegged rate of N197, implying that the new policy was yet to take effect.

Bond prices rose as traders bought debt to cover positions taken before the CBN’s decision as they had expected the main rate to stay at 12 per cent to tackle slowing economic growth.