Naira gains as banks offload dollars into FX market.

The pressure on the foreign exchange (FX) market is beginning to ease as the naira recovered after commercial banks offloaded dollars into the official market in response to 24 hours given by the Central Bank of Nigeria (CBN). This was seen as the volume of dollar transactions by willing buyers and willing sellers, consisting of banks, exporters, and investors, increased by 85.36 percent. The daily FX market turnover increased to $134.07 million on Wednesday from $72.33 million recorded on Tuesday at the official market. Consequently, Naira gained 1.85 percent as the dollar was quoted at N,1455.59 on Wednesday compared to N1,482.57 quoted on Tuesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), data from the FMDQ indicated. Also, the intraday high appreciated by 1.46 percent to N1,509 on Wednesday as against N1,531 quoted on the spot on Tuesday. The intraday low steadied at N789 per dollar. On Wednesday, the CBN announced limits on how much banks can hold in foreign currencies and expressed concern about the growth of forex exposures on their balance sheets after the local currency tumbled against the U.S. dollar. To read further, click HERE.

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