Naira Settles at N292.15/$ as Dealers Limit Spread on Offers – THISDAY

Obinna Chima in Lagos and James Emejo in Abuja

The naira closed at N292.15 to a dollar on the interbank market Monday, slightly stronger than the N292.25 to a dollar at which it closed on Friday, after volatility surged following the decision by the Central Bank of Nigeria (CBN) to remove the limit on bid-offer spreads on the FX market, fuelling expectations that the naira would extend its fall as it was traded more freely.

It was gathered that the nation’s currency fell to as low as N297 to a dollar during intra-day trading, before it recovered to N294.5 to a dollar and finally settled at its closing rate of N292.15 to a dollar.

THISDAY learnt that the naira was buoyed by the decision by authorised dealers to restore the 50 kobo offer spread on the currency in the FX market.

The treasurer of one of the leading commercial banks, who pleaded not to be named, said the Financial Market Dealers Association (FMDA) sent an e-mail to its members, directing them to restore the 50 kobo spread on offers.