Naira drives into N2 depreciation again

…As CBN set to sell N138.16b worth T-bills

The Naira on Wednesday depreciated by N2 against the United States dollar at the parallel market as it currently trades at N467 compared to N465 which it traded on Tuesday.

Business247 News Online notes that the currency also appreciated against the British Pounds, trading at N510 while Euro stood at N560 from N570 and N512 it trades respectively on Tuesday..

At the official inter-bank market, the Naira traded at N304.75 to the dollar from N306.71 it posted in the previous day.

However, since the resumption of the sale of Diaspora remittances to Bureau De Change by Travelex, the Naira has been firming continuously in all the segments of the Foreign exchange markets.

The close rate of the Naira on Monday when the market opened for this week showed that the local currency consolidated its gain against the dollar at the interbank market, where the Naira closed at N304.75 from N306.71 posted on Friday.

It firmed against the dollar and other currencies at the parallel market as it closed at N470, N580 and N510 from N473, N590 and N512 posted on Friday.

Trading at the BDCs segment saw an upward review of the official price of the dollar to N380 by the Central Bank of Nigeria.

In his remarks, Alhaji Aminu Gwadabe, said that the regulatory authority had to review the official selling price of dollars to BDCs to encourage Nigerians in Diaspora, whose remittances was being sold to BDCs.

Gwadabe, who is the President, Association of Bureau De Change Operators of Nigeria, said that the move was to discourage speculators.

He said that the sustained appreciation of the nation currency would discourage the patronage of parallel market traders.

Gwadabe said that the activities of parallel market traders had continued to widen the gap between the official and parallel market rate.

Meanwhile, in a public notice, the central bank said it would raise N36.78 billion in three-month papers, N35 billion in six-month bills and N66.38 billion in one-year bills. Payment for the purchases would be made on Thursday.

Nigeria issues treasury bills to raise cash to fund the budget deficit, manage banking system liquidity and curb rising inflation.