Having depreciated in value to N500 to the
dollar at the parallel market, the value of
the naira appreciated to N498 to the dollar,
the value it had been trading for weeks or
weeks, even as external reserves rose to
$28.28 billion the highest in the year
highest in a year.
The naira however remained stable at
N305.25 to the dollar at the interbank
market, on the website of the Association
of Bureau de Change Operators; the naira
was quoted at N315.38 to the dollar.
Demand for the greenback grew and the
Central Bank of Nigeria rationed dollar
supply, having sold $660 million in 3- and
5- month currency forwards at an auction
aimed at clearing a backlog of dollar
demand. Traders however said the dollar
sale was not enough to satisfy the market.
Data on the website of the apex bank
showed that the nation’s external reserves
has risen by 7.89 per cent since the
beginning of the year.
Traders said while the apex bank has been
selling dollars on the official market to
support the naira, dollar shortages were
causing the naira to weaken on the black
market.
Head of Africa Research at Standard
Chartered Bank, Razia Khan said, “Despite
rising foreign exchange reserves, it is the
amount of forex that is supplied that
matters.
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Thursday, 9 February 2017
Naira Appreciates To N498/ $ As Reserves Hit $28.3bn
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