Connect with us


Naira falls to N286/ per dollar in interbank market



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

For the second day, the naira has depreciated to N286 per dollar as the Central Bank of Nigeria (CBN) sold $2 million dollars in interbank market on Tuesday.

This is coming after the CBN removed its currency peg in an effort to alleviate chronic foreign currency shortages choking the economic growth.

The naira, which opened at 286 per dollar, representing 1.4 percent decline closed lower at 282 naira on Monday.

Ripples Nigeria had earlier reported that the CBN commenced new flexible foreign exchange trading yesterday with expectation to impact the market positively.

Read also: CBN auctions $615m as flexible FX policy commences

Although, the impact is not felt yet, but the CBN is optimistic that the initiative will boost liquidity in the market.

Recall that the inter-bank exchange rate was fixed at N197 per dollar via controls and administrative measures.

But last week, the CBN introduced a flexible exchange rate regime which allows for the determination of the exchange rate by market forces of demand and supply.

Under the new regime, the CBN can intervene in the market by conducting a Secondary Market Intervention Sales, SMIS, through the sale of foreign exchange to Authorised Dealers (wholesale) or to end-users through Authorised Dealers (retail).

RipplesNigeria …without borders, without fears

Join the conversation


Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now