Reports suggest the central bank sold dollars on Monday to dealers at a whopping rate of N198 to the dollar. This sale follows Friday’s sale all in a bid to boost dollar liquidity on the interbank market and strengthen the naira.
Today’s sale by the CBN is sighted by sources as a “special intervention” just as it did on Friday and is likely to continue as demand for the dollar continues to rise. The CBN is also doing this to curb speculative attacks on the naira and had instructed dealers to desist from two-way deals and not selling any dollar bought from the CBN.
The CBN has repeatedly said it has no plans to devalue the naira but with this sale now effectively over its preferred band one may assume this is akin to a devaluation. The Interbank rate closed at N199.5 today.