Naira Appreciates as CBN Intervenes in Interbank FX Market – Thisday

Nigerian naira notes are seen in this picture illustration March 15, 2016 REUTERS/Afolabi Sotunde/Illustration

The naira pared some its previous day’s loss on the interbank forex market as it appreciated to N314.75 to the dollar on Thursday, stronger than the N317 to the dollar it closed on Wednesday.

The positive momentum displayed by the nation’s currency was attributed to an intervention by the Central Bank of Nigeria (CBN), which sold dollars to boost liquidity and help the naira to strengthen against the greenback.

The central bank asked some traders to bid for $1.5 million each, Reuters reported, adding that the Bank had been selling hard currency since this week.

A total of $6.27 million traded on Thursday.
However, on the parallel market, the naira climbed marginally to N395 to the dollar, up from the N394 to the dollar it closed the previous day.

The central bank had intervened in the interbank forex market on Tuesday to help support the naira after it hit an all-time low of N350 to the dollar in thin volume on that day.

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