Naira Increases In Value As Surplus Dollars Hit Nigeria Market

The Nigerian currency Naira further increased in value as the country’s money market was hit with surplus Dollars, thereby jolting financial speculators.

NAN reports that the foreign exchange market closed on Friday without selling off all the foreign currency released by the Central Bank of Nigeria (CBN).

The CBN had released fresh 100 million dollars at the interbank market to meet customers’ demands, but the dealers were only able to pick about 81.35 million dollars, leaving surplus.

Speaking on the development, Mr Isaac Okorafor, the Acting Director, Corporate Communications, CBN, attributed the inability of authorised dealers to pick up the entire offer of the CBN to increasing dollar supply.



In a statement, he said another reason was the current sense of apprehension among dealers who anticipate a further crash in the rate of the dollar.

He reiterated the determination of the Bank to sustain its current interventions in the market.

“Those who doubt the capacity of the Bank to sustain the intervention in the FOREX market are beginning to have a change of mind,” he said.

The Naira has continued to sustain its ride against major currencies, especially the United States dollar, since CBN consistently pumped in more dollars.

The dollar exchanged at about N380 in Abuja, and N385 to N390 in Lagos.

At the Bureau De Change (BDC) window, the Naira was sold at N399 to the dollar, while the pound sterling and the Euro were sold at N500 and N400.

The Nigerian currency appreciated at the interbank market, closing at N307 to the dollar.