• Wednesday, May 22, 2024
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BusinessDay

Naira gains to 1,250/$ after CBN sells fresh dollars to BDCs

Naira gains to N1,250/$ as CBN sells fresh dollars to BDCs

The naira gained Tuesday morning after the Central Bank of Nigeria (CBN) sold dollars at a discount to Bureau de Change (BDC) operators in an attempt to ease the renewed pressure in the black market.

A dollar sold for N1,250/$ on the streets on Tuesday morning, up from N1,270/$ on Monday, according to multiple traders who spoke with BusinessDay.

The appreciation of the naira is coming on the heels of the CBN’s sale of $10,000 to the BDCs at a rate of N1,021/$ on Monday.

The apex bank last sold dollars to the BDCs at a rate of N1,101 per US dollar and has now intervened in the market four times this year, selling a combined $63 million since lifting a ban on the sale of the greenback to the informal market.

The latest sale is expected to relieve the renewed pressure on the naira which snapped a one-month rally last Friday and fell for the second straight day on Monday.

Traders say they expect the naira to appreciate by close of trading today and in the coming days following the CBN’s dollar sale.

Details later…