Naira rises to N389/$ as banks buy 29% of CBN’s dollar offer

The naira yesterday appreciated to N389 per
dollar in the parallel market following dollar
sales to bureaux de change (BDCs) by the
Central Bank of Nigeria (CBN).
The apex on Wednesday sold $20,000 to each
of the over 3000 BDCs in the country, boosting
dollar supply for retail forex transactions.
As a result the parallel market exchange rate
dropped from N391 per dollar to N389 per
dollar.

Confirming this to Vanguard, President,
Association of Bureaux De Change Operators of
Nigeria (ABCON), Alhaji Gwadabe said that
BDCs have already paid to purchase another
$20,000 from the CBN which would be
delivered today, expressing optimism that the
supply will further enhance the appreciation of
the naira against the dollar.

Meanwhile, the CBN said that banks and other
authorized dealers have again failed to fully
subscribe to the $150 million it offered
yesterday.

It stated that the dealers could only pick the
sum of $43.5 million, which represents 29 per
cent of the $150 million offered for
subscription in the wholesale segment of the
foreign exchange market.

Confirming this development, the apex Bank’s
spokesman, Isaac Okorafor, reaffirmed the
Bank’s position to sustain the intervention with
a view to making foreign exchange available for
all genuine transactions eligible for foreign
exchange through the CBN window.

Mr. Okorafor also allayed the fear over the
dwindling subscription by authorized dealers
noting that the development merely goes to
confirm the extent of liquidity in the foreign
exchange market and the determination of the
CBN to sustain the intervention aimed at
ensuring stability in the market.