Naira reverses gain trades at N454.60k average despite CBN interventions, reserves rises to $29.6bn

The nation’s currency on Wednesday reverses its gain to close at an average rate of N454.6k per U S dollar from N451/$ on Tuesday at the parallel market in spite of the intervention efforts of the Central Bank of Nigeria (CBN).

Investigation by Metrobusinessnews.com revealed that dollar was sold at N453 at the Lagos international airport on Wednesday as against N445 sold in Tuesday. At the Apapa area of Lagos, the local currency traded at N456 per dollar compare to N453 on Tuesday, while it naira was sold at N455 per dollar at the festac area of Lagos. Abokifx as at 6pm today was atN455/$

Currency dealers attributed the slight depreciation in naira to volatility which has persisted in the foreign exchange market.
At the interbank spot foreign exchange, the local currency remained stable, closing at N305.50k per dollar, data from FMDQ revealed.
The external reserves rose to $29.6 billion as at February 27,2017 according to the data obtained from CBN website.
“The transfer end of the market is still very volatile and driving the cash dollar upward. There are a lot of backlog in the transfer end of the market”, Aminu Gwadabe, acting president, Association of Bureau De Change Operators of Nigeria (ABCON) said.
However, a total of 2529 bdcs were qualified for the proceeds of International Money Transfer Operators (IMTOs) this week for $8,000 each at N381/$ . The paralel market rate stabilized at N455/$.
“We still appeal to the cbn to look into our request on harmonization of rates and upward review of our volumes. We believe it is only the Bdcs that can swiftly help the cbn to achieved its objective of naira strenght. The cbn should replicate the dollar rain in the banking sector to the bdc sector to see further naira strenght in the market. The bdcs have a potent information mechanism between the regulators and the public”, Gwadabe said.