Naira to strengthen on $21m sales to BDCs
by HOPE MOSES-ASHIKE
October 27, 2016 | 8:59 pm| | | Start Conversation
The nation’s currency which depreciated against the US dollar for the past two days is expected to recover following the dollar sales to Bureau De Change (BDCs) worth $21 million by Travelex, a global currency dealer.
Naira yesterday weakened against the dollar at the unregulated parallel market closing at N470/$ but later firmed up to N465 per dollar.
At the BDC segment of the foreign exchange, the naira lost N7.00k to close at N468/$. This represents 1.54 percent fall from N461/$ sold the previous day, BusinessDay findings show.
However, the local currency reversed its lost on Wednesday to close at N305.00 yesterday at the inter-bank spot market. This shows a 0.58 or N1.78k gain compared to N306.78k traded the previous day, data from FMDQ revealed.
Currency traders linked naira depreciation to increased demand from small businesses and parents buying hard currencies to pay school fees abroad.
The Monetary Policy Committee (MPC) noted at the last meeting that average naira exchange rate weakened at the inter-bank segment of the foreign exchange market in September.
The exchange rate at the interbank market open ed at N285.25/US$ and closed at N305.90/US$, with a daily average of N302.87/US$ between July 1st and August 26, 2016.
The Committee observed that total foreign exchange inflows through the CBN increased by 89.14 per cent, from US$1,092.21 million recorded in July to US$2,065.79 million in August 2016.
Big Read |