The recent move of the Central Bank of Nigeria (CBN) to frequently pump in foreign exchange into the Nigerian market seems to be paying off even in the parallel market.
This is as Bureau De Change Operators of Nigeria has said that the Naira will certainly exchange below N403 to a dollar, with the rates closing at N403 per dollar in the previous week.
President of the Bureau De Change Operators, Aminu Gwadabe, expressed optimism at the naira’s chances at the parallel market, and said the development was due to the review of volumes upward of the proceeds of International Money Transfer Services Operators (IMTSO) and removal of disparity in applicable exchange rates by the apex bank in the bureau de change subsector.
“Following the beginning of the CBN’s injection of liquidity into the interbank market for banks the naira rebounds to an all low of N360/$ from N520/$. However, surprisingly the scenario couldn’t last more than 2 weeks, despite the continuous injection of liquidity into the banking system as the rates began to somersault to a new high of N420/$, he stated.
The decision of the apex bank to inject more forex into the market is to mitigate the imbalance in the currency exchange.
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