Thursday, Sep 24th 2020 7:12 AM

Market Digest Nigeria


Naira appreciates to N450/$ in parallel market, as CBN intervenes

The naira was today strengthened in the parallel market as it appreciated against the dollar.

According to information from Aboki fx, the naira appreciated by N10, exchanging for N450 to a dollar against the N460 to a dollar, that it was sold for yesterday. The naira also appreciated against the pounds sterling, exchanging for N510 to one pounds sterling as against the N525 to one-pound sterling that it traded for the previous day.

The positive performance of the naira against other currencies could be attributed to the intervention of the Central Bank of Nigeria (CBN), in the foreign exchange market, which had been hit by liquidity crisis since last month.

The CBN, in a circular yesterday, said it was resuming the periodic sales of dollars to dealers for SMEs and students in foreign universities who need the foreign exchange for essential imports and payment of school fees respectively.

The injection of $100 million into the foreign exchange market is expected to help improve the liquidity situation in the foreign exchange.

It was reported earlier today, that the naira hit N388.94 to a dollar at the spot market which is mostly used by exporters and foreign investors.

With the partial relaxation of restrictions and lockdown, the pressure on the foreign exchange is expected to increase as businesses do open and engage in more activities.


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