Naira gains N1.86k over dollar

The naira on Tuesday appreciated by N1.86k or 0.9 percent against the US dollar at the inter-bank foreign exchange market after the Central Bank of Nigeria (CBN) closed the Retail/Wholesale Dutch Auction System (RDAS) and (WDAS).

Consequently, after trading on Tuesday, the local currency closed at N196.59/$ compared to N198.45/$ the previous day, according data from Financial Markets Dealers Quotations (FMDQ).

At the parallel market, naira weakened by N1.00k/$ or 0.5 percent as it closed at N214/$ as against N213/$ the previous day.

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Also at bureau de change segment, naira slide N1.00k/$ against the dollar as it closed at N212/$ compared to N211/$ the previous day.

The CBN on Wednesday held the last foreign exchange auction at the twice RDAS window as it offered $200 million to participating deposit money banks. The closure of the RDAS and WDAS will engender confidence and transparency in the foreign exchange market, analysts have said.

The CBN on Wednesday closed its RDAS and WDAS windows and henceforth directed that all demand for foreign exchange be channeled to the inter-bank foreign exchange market.

This implies that the apex bank has effectively discontinued its foreign exchange subsidy for certain categories of demand.