Ngozi Amuche
Forex turnover improved by 43percent as Nigeria’s exchange rate at the NAFEX window stabilised to close at N386/$1 during intraday trading on Thursday.
Analysis of the trading by the BDCs operator’s showed that the naira remained stable, closing at N467/$1 at the parallel market, after another round of forex allocation to BDC operators by CBN.
At the black market where forex is traded unofficially, the Naira remained stable against the dollar to close at N467/$1, according to information obtained by our correspondent.
However, the local currency has strengthened by about 7.8percent within the last one week at the black market, as the CBN introduced some measures targeted at exporters and importers, in order to boost the supply of dollars in the foreign exchange market, and reduce the high demand for forex by traders.
CBN has sold over $200 million to BDCs since the resumed forex sales on Monday and this was expected to inject more liquidity to the retail end of the foreign exchange market, and discourage hoarding and speculation.
The exchange rate against the dollar has failed to sustain the initial gains made, after the CBN announced plans to provide liquidity.
BDC operators have urged the apex bank to reconsider the margin allowed for the currency traders, as it was inadequate to meet their expenses.
There has been a drop in speculative buying of foreign exchange, although demand backlog by manufacturers and foreign investors still puts pressure, and creates a volatile situation in the foreign exchange market.