Naira reverses gains, trades at N454.60k despite CBN interventions

…External reserves rise to $29.6bn

The nation’s currency on Wednesday saw its gains reversed, closing at an average rate of N454.60k per U S dollar, from N451/$ on Tuesday at the parallel market, inspite of the intervention efforts of the Central Bank of Nigeria (CBN).
BusinessDay investigations revealed that the dollar was sold at N453 at the Murtala Muhammad International Airport on Wednesday, as against N445 at which it sold on Tuesday. In the Apapa area of Lagos, the local currency traded at N456 per dollar, compared to N453 on Tuesday, while it was sold at N455 per dollar in the Festac area of Lagos.
Currency dealers attributed the slight depreciation of the naira to volatility which has persisted in the foreign exchange market.
At the interbank spot foreign exchange, the local currency remained stable, closing at N305.50k per dollar, data from FMDQ revealed.
External reserves rose to $29.6 billion as at February 27, 2017 according to data obtained from the CBN website.
“The transfer end of the market is still very volatile and driving the dollar upward. There is a lot of backlog in the transfer end of the market”, Aminu Gwadabe, acting president, Association of Bureau De Change Operators of Nigeria (ABCON) told BusinessDay.
However, a total of 2,529 BDCs were qualified for the proceeds of International Money Transfer Operators (IMTOs) this week, for $8,000 each at N381/$ . The paralel market rate stabilised at N455/$.
“We still appeal to the CBN to look into our request on harmonisation of rates and upward review of our volumes. We believe it is only the BDCs that can swiftly help the CBN to achieve its objective of naira strenght. The CBN should replicate the dollar rain in the banking sector to the BDC sector, to see further naira strenght in the market. The BDCs have a potent information mechanism between the regulators and the public”, Gwadabe said.