Naira firms up, recovers after days of depreciation, anxiety
Nigerian Naira on Tuesday rebounded with strength forcing US dollars down, a move towards convergence of rates between interbank and parallel markets.
Yesterday, naira traded between N380 (buying rate), and N390 (selling rate) stronger than N395 recorded on Monday, while the Pound Sterling and the Euro closed at N480 and N415 respectively.
Even at the Bureau De Change (BDC) window, the naira was sold at N362 to the dollar, while the Pound Sterling and the Euro closed at N483 and N430 respectively.
However, trading at the interbank market saw the naira closed at N306.25. Analysts say the difference of N52.75 may be closed if the Central Bank of Nigeria’s (CBN) injection of dollars continues with corresponding growth in industrial activities.
Traders at the market said that the intervention by the CBN at the different segments of the foreign exchange market was driving the strengthening of the naira against the dollar.
Explaining the situation, the President, Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe had predicted the appreciation of the naira as BDCs set to receive more Diaspora remittances.