The naira snapped a three-day losing streak on Thursday as it appreciated across foreign exchange (FX) markets following increased dollar liquidity.
After trading on Thursday, the naira gained 5.8 percent or N91.32 as the dollar was quoted at N1,576.10 compared to N1,667.42 quoted on Wednesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), data from the FMDQ Securities Exchange Limited showed.
Dollars supplied by willing buyers and willing sellers increased significantly by 232.49 percent to $334.05 million on Thursday from $100.47 million recorded on Wednesday at NAFEM.
The apex bank is said to have sold some $60 million to banks towards the close of trading, Thursday.
Read also: Naira hits N1,667/$ after MPC’s surprise rate hike
The CBN also sold dollars to Bureau De Change (BDC) operators at a rate of N1,590 per dollar in a move aimed at boosting liquidity in the foreign exchange market.
Consequently, the intraday high closed at N1,699 per dollar on Thursday, almost the same rate quoted on Wednesday. The intraday low printed at N1,567, up from N1,600 closed on Wednesday.
Read also: Naira loses N95.83 on official market after rate hike
The local currency also gained N5 on the parallel market commonly referred to as the black market. It closed at N1,695 as against N1,700 traded on Wednesday.
In the statement on Wednesday, the CBN revealed that each eligible BDC would be able to purchase up to $20,000 from the Central Bank to cater to retail market demand for invisible transactions. “This move is to ensure adequate liquidity and meet the growing demand for invisible transactions in the market,” the CBN explained.
