Naira gains further as CBN mops up N138bn in TB sales – Businessday

dollar to naira

Appreciation in the value of the naira against the dollar continued yesterday across foreign exchange markets, BusinessDay survey reveals.

Naira yesterday gained against the dollar by N2 or 0.43 percent each at the Bureau De change (BDC) segment of the forex market and parallel market, and closed at N468/$ each at both markets.

At the interbank spot market, the local currency closed stable at N304.75k against the dollar, data from FMDQ show.

Aminu Gwadabe, acting president of Association of Bureaux De Change Operators of Nigeria (ABCON), told BusinessDay on phone that “any BDC operator that sells above the N5 margin will be sanctioned and the operating licence will be withdrawn.”

He said the BDCs across other states could not commence their biometrics registration with Travelex due to IT challenge, which he said was being addressed.

However, the CBN plans to mop up N138.16 billion through the sale of short-dated treasury bills at an auction next. The CBN said it would raise N36.78 billion in three-month papers, 35 billion naira in six-month bills and 66.38 billion naira 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.