- The Naira has gained three points against the Dollar at parallel market
- This comes even as CBN plans to sell $100 million at a special foreign currency auction
- The Nigerian currency trades at N305.9 against the Dollar at the official market
The series of intervention at the foreign exchange market by the Central Bank of Nigeria seems to be yielding positive results as the Nigerian Naira has again strengthened against the American Dollar at the parallel market.
According to NAIJ.com findings, the local currency has gained three points against the green back as it now trades at N365/$1 as against the previous rate of N368$1 it closed on Friday, June 30.
However, the Nigerian currency maintained the same of N490 and N410 against the Pound Sterling and Euro respectively.
The Naira strong performance at the parallel market can be attributed to recent activities of the CBN.
Last week, the apex bank sold $20,000 to each of the 3,145 Bureau De Change (BDCs) in continuation of its bi-weekly dollar sales to the BDC segment. The CBN has also revealed plans to sell $100 million at a special foreign currency auction on Monday, July 3.
The CBN has been intervening on the unofficial market in the last few months in an attempt to narrow the spread between rates on the official market and black market. It has sold more than $5 billion since February that the local currency dropped to a record low of N520/$1.
Nigeria has at least six different exchange rates including a retail rate set by licensed exchange bureaus, the official and black market rates and a window for investors where the Naira can be traded at rates set freely between buyers and sellers.
However, the country has been battling a currency crisis brought on by low oil prices, which has tipped her economy into recession and created chronic dollar shortages.
Meanwhile, the Naira trades at N305.9 against the Dollar at the official market.
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