Central Bank of Nigeria (CBN) on Monday weakened the naira
marginally, selling dollars at N307 each for the first time on the official
interbank market, in what traders say could signal a gradual move to merge its
multiple exchange rates.
Nigeria’s convoluted exchange rate system has been used to
manage what the central bank described as “frivolous” demand for dollars at the
peak of a currency crisis which began two years ago.
The country now has at least five exchange rate including
the official one which the bank used to mask pressure on the currency. In April
it allowed foreign investors to trade the naira at market determined rate,
which has weakened the currency to around 360.
”It’s possible the central bank is working towards a gradual
convergence of rates, one trader told Reuters.
Earlier this month the bank sold dollars at 306 naira for
the second time after maintaining a level of around 305 naira on the spot
market for two months.
REUTERS
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