Naira gains 1.14% to N390 as dealers envisage swift recovery

The Naira on Thursday appreciated against the dollar at the parallel market, Business247 News Online reports.

The Nigerian currency on Thursday afternoon gained 4 points to change at N390 to the dollar, from N394 it traded on Wednesday, representing an appreciation of 1.14 per cent.

The currency also hedged against the Pound Sterling and the Euro as it traded at N390 and N420, from N500 and N426 it posted on Wednesday.

Similarly, at the Bureau De Change segment of the market, the naira hedged against the dollar, the Pound Sterling and the Euro as it closed at N390, N500 and N426 respectively, from N392, N503 and N426 posted on Wednesday.

Meanwhile, the naira extended its gains at the official interbank market as it closed at N310 to the dollar, from N317 it posted on Wednesday; traders expressed optimism that the intervention of the Central Bank of Nigeria (CBN) at the Forex market would translate to a steady recovery of the naira.

Mr. Raheem Bello, a Bureau De Change (BDC) operator, said that Deposit Money Banks (DMBs) were perfecting the documentation required to commence the sale of dollars to BDCs.

Bello noted that the exercise would, sooner than later, see to the appreciation of the nation’s currency at the Forex market.

Business247 News Online reports that the CBN had on Tuesday re- issued the guidelines on the sale of dollars from proceeds of International Money Transfer Operators (IMTO) by DMBs to BDCs. The CBN said that each BDC would be allowed to purchase a maximum of 30, 000 dollars per week from an authorized dealer. The apex bank warned that any violation of procedures by BDCs would be punished accordingly.