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Hope for naira as CBN moves to clear forex backlog

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BDCs to get $50, 000 weekly as CBN increases sales benchmark

There are hopes that the price of the naira may rise further as the Central Bank of Nigeria on Monday stated its resolve to clear all backlog of foreign exchange demand in the country.

The apex bank had last week abolished the official rate for the naira as it left it open for market forces to determine its value in the open market.

The move saw the naira gaining points, and closing at N325 to the U.S dollar, from its earlier N355 to the dollar before the CBN announcement.

Read also: NSE RoundUp! Stock Market rebounds with 7.40% on fresh bargain

Analyst are of the view that the new CBN move to pay off the backlog of the forex demands will further strengthen the naira, making its value lowerin relation to the greenback.

Already, at the open of business on Monday, the naira traded at N270 to the dollar prompting  some foreign investors to wait and see the level of the exchange rate depreciation before venturing into the Nigeria market.

Following the unveiling of the new CBN foreign exchange guidelines investors reportedly pumped huge amount of funds into the market, with the market capitalisation at the Nigerian Stock Exchange soaring by over N760bn,with investors committing huge sums to acquire more shares.

 

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