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Pressure eases as Naira nears level before CBN hammer on BDCs

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Naira falls by N2 as CBN promo fails to stop depreciation

The Naira on Tuesday, again gained against the U.S dollar at the parrallel Market as it neared the level it was before the Central Bank of Nigeria (CBN) shock move to stop selling dollars to Bureau De Change (BDC) operators.

Data obtained from Abokifx shows the domestic currency strengthened to N508 per dollar from N512 on Monday at the black market.

Following the CBN’s decision to stop selling dollars to BDCs, Nigerian currency traded at N525/$, its lowest level to the dollar in the black market

Market observers are even expecting a further improvement in the coming months following banks assurance to make available the fiat currency.

Read also: Inflation, power, weak Naira push manufacturing cost up by 30% in H1, 21

Also, at the parrallel market, Naira appreciated against the Pound Sterling yesterday by N7 to sell for N705/£1 compared with the previous day’s N712/£1 and gained N2 against the Euro to trade at N598/€1 in contrast to N600/€1 it quoted a day earlier.

However the value of the Naira at the Investors and exporters window the official market forex market remained unchanged from Monday.

Data from FMDQ shows the U.S dollar was priced at N411.50/$1.

During the close of trade yesterday, it was observed that the value of transactions reduced by $28.03 million or 24.3 per cent to $115.17 million from $143.20 million recorded on Monday.

Ripples Nigeria had reported on Monday that commerical banks are selling dollars at N412 to Nigerians.

At the close of trading yesterday, the difference between the official and unofficial exchange rate dropped to N97.5.

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