Nigeria’s central bank sold $80 million to bureaux de change operators on Wednesday at N196.95 and fixed a spread at which they can resell the dollars of not more than 3.5 percent to its clearing rate, the association president said.
The naira weakened to a new low of N242 on the parallel market, down 0.41 percent on the day, as persistent dollar shortages continued, Aminu Gwadabe, president of Nigeria’s bureau de change association, told Reuters.
On the official interbank market, the naira ended at the bank’s pegged rate of 196.95 to the dollar.
Traders attributed five blocks of dollar sales close to the end of Wednesday’s trading, totalling $31 million, to the central bank.
The central bank has said it is in no mood to devalue the naira, given the risks to inflation from a weaker currency, and that it will not be focusing on the thinly traded parallel market when determining the exchange rate.
Investors have also been nervous Nigeria might lose its place in the benchmark GBI-EM local currency debt index.
JPMorgan warned in June it could eject Nigeria from its benchmark index by year-end unless it restored liquidity to currency markets in a way that allowed foreign investors to transact with minimal hurdles.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
