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The CBN Believes This Is Why Naira Is Gaining On Black Market

Naira-Dollars, Exchange rate falls at black market as forex liquidity declines by 89.8%

Naira-Dollars

Nairametrics| Acting Director, Corporate Communications Department, CBN, Mr. Isaac Okorafor, disclosed that the CBN injected $100 million into the Forex market yesterday to authorized dealers to meet the 7 to 15-day forwards requests of customers.

He went on to say that, the banks and authorized dealers were only able to pick up $68.51 million. Okorafor said the inability of the authorized dealers to fully subscribe to the CBN, shows that there is a surplus of forex in the market, which may lead to further appreciation of the naira.

In a related development, the CBN would today continue to sell $20,000 to 3,170 BDCs. Association of Bureaux De change Operators of Nigeria, ABCON, Alhaji Aminu Gwadabe disclosed that the increased supply of dollars to BDCs is rattling the market.

The parallel market exchange rate went down from an average of N397 per dollar on Tuesday to N385 per dollar at the close of business yesterday.

Managing Director/Chief Executive, H.J Trust BDC, Harrison Owoh pointed out that “The appreciation shows the importance of BDCs in the foreign exchange market. Everybody is happy about the appreciation, and we expect it to continue.”

Gwadabe said that the BDCs “have already funded our accounts to purchase another $20,000 from CBN before the end of the week. So we expect the rate to further go down.”

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