Just In: Naira Rallies Against The Dollar As CBN Promises Weekly Intervention

The naira has rallied against the dollar on Thursday to N455 per dollar after the Central bank of Nigeria promised weekly sale of foreign exchange to Small and Medium Enterprises (SMEs), international students and subsequently  Bureau De Change (BDCs) operators.

 The Central Bank of Nigeria had suspended sale of FOREX to BDC operators of about $1 billion a month due to  “falling demand for invisibles and BDC operators’ health safety concerns linked to COVID-19.”

As a result, FX demand exceeded  supply and led to a gradual fall of the naira against the dollar, hence the apex bank on Wednesday adjusted its earlier decision, saying it would commence its weekly intervention to the Bureau De Change operators, but did not announce a new date and modalities.

The bank added that the move would help restart the economy as the lockdown is gradually being relaxed.

The naira traded on the parallel market at N450 against the dollar, from N460 earlier recorded in the last two trading days, a data from AbokiFX revealed.

In previous days, the dollar sold for  N450 on Monday April 28, from N430 on Friday April 24, 2020.

CBN told the International Monetary Fund (IMF) in a statement that it had moved to  introduce a unified and more flexible exchange rate, which would be an “important shock absorber, especially in turbulent times,” adding that  FX interventions will be ” limited to smoothing large fluctuations in the exchange rate.”