Naira Appreciates Against The Dollar

The Nigerian currency, on Thursday, traded between N376 and N378 to the United States Dollar in Lagos, Abuja and Kano.

Recall that the Naira, was sold at over N405 to $1 as of Monday this week.

The crash in the dollar was caused by the interventions of the Central Bank of Nigeria (CBN) to inject more foreign exchange into the financial system, specifically targeting critical sectors in addition to special interventions in the areas of SMEs and BDCs.

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In a bid to sustain the supply of liquidity to the foreign exchange market, CBN in the last two weeks has made special interventions by offering special foreign exchange window for SMEs to access $10,000 per quarter for importation of basic items for their operations.

The Apex bank also pumped over $380 million into the interbank market with a view to ensuring liquidity in the market and enhance access for genuine end users.

According to a source at the apex Bank, the Naira is expected to appreciate further when the BDCs receive another tranche of $20,000 purchases from the CBN today, April 20, 2017.

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