The Central Bank of Nigeria has resumed the sale of foreign exchange, forex, to banks in order to clear the backlog of unmet demand said to be in excess of $1.5 billion after many weeks of absence from the foreign exchange market.
Earlier this week the CBN intervened at the investors and exporters (I&E) window of the forex market, causing the naira to appreciate significantly from N480/$ to N420/$.
Also Read: CBN To Stop Sale of Forex To Banks.
Market sources said the interventions would continue until the backlog is cleared.
The naira was quoted at N 435 per dollar in the parallel market on Thursday, after it gained almost 10% on Tuesday. It traded at N386.48 on the over-the-counter spot market. The apex bank sold around $50 million to foreign investors on the spot and forward markets this week in a test trade to gauge the level of demand and said it will resume sales to retail currency operators next week. It was also gathered that in order to stimulate forex liquidity, CBN has been intervening at the I&E window, where on Tuesday it sold $5 million and also sold the same amount on the window yesterday.
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