Naira Recovers Greatly Against the Dollar as CBN Pumps in $180m
The naira is on a speedy way to recovery following the new forex policy by the Central Bank of Nigeria. Just in less that one week, the naira has gained over N85 against the dollar with many predicting that the Nigerian currency will gain more.
The currency exchanged for N430 to the dollar late Monday at the parallel market. It was N460 to the dollar at the weekend.
The Central Bank of Nigeria (CBN) yesterday released $100million into the wholesale forwards segment of the market and $80million into the banks specifically for the settlement of dollar demand for school fees, medicals and Personal Travel Allowance (PTA), among others.
CBN spokesman Isaac Okorafor, in a release, said that its commitment to providing enough forex for legitimate business remained unshaken, pointing out that it would do all that is required to ensure the steady supply of forex to the market.
Naira’s appreciation has raised hopes that the naira/dollar exchange rate may well be on a permanent journey to the N300 to the dollar predicted by some analysts in the past.
The apex bank last week rekindled the forex market by releasing $500million to be accessed through the Deposit Money Banks to fund school fees, Personal travel Allowance and medical bills.
The CBN had maintained that much of the dollar demand had been a bubble created by speculators and hoarders of the greenback, warning market players and keepers of dollars to make hay and sell their holdings to avoid heavy losses.