CBN weakens Naira sells N307/$ - Welcome to Julia Blaise Blog


Monday, 4 December 2017

CBN weakens Naira sells N307/$

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.


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