Naira has continued on its four-day winning streak against the U.S. dollar on the parallel market yesterday to close at N480/$, stronger than the N501 to the dollar from the previous day, as the new foreign exchange policy actions introduced by the Central Bank of Nigeria (CBN) forced more currency speculators to sell off the greenback as sell rates fell as low as N460/$.
Also, The buy rate of the dollar also increased yesterday to close N470/$, as against the N490/$1 at which it closed on Wednesday.
In all, the naira has appreciated by N39 since Monday when the new FX actions were announced by the regulator.
Information gathered has it that, as part of efforts made to sustain dollar liquidity in the market and bridge the gap between the interbank FX and parallel markets, and that Central bank auctioned another $230 million through forward contracts on the interbank FX market yesterday.
It auctioned $370 million on Tuesday and sold $1.5 million on the spot market.
Comments on the new FX measures, analysts at Cowry Assets Management Limited said the move by the CBN to increase FX availability to end users has been helped by the recent buildup of Nigeria’s foreign exchange reserves amid increased crude oil revenues.
“Given the improvement in the external sector, we anticipate that the new measures could pave the way for a gradual return of confidence in the foreign exchange market.
“We also expect the monetary authority to do more to harmonize the exchange rates and thereby discourage arbitraging,” they added.
In the same vein, Ecobank Nigeria noted that the new policy actions would also help to reinvigorate the hitherto illiquid interbank FX market.
According to Ecobank, the decision to cap the settled rate for the retail transactions at 20 per cent above the interbank market rate and the restriction of school fees to university education only was a subtle way of partly controlling bank charges and manage likely FX demand pressure in the market.
The bank added: “Over all, the impact of the circular could be short-lived, if the CBN does not show strong capacity to support the FX market with liquidity.”
Also, Cyprus-based FXTM Research Analyst, Lukman Otunuga noted that with dollar demand for school fees payments overseas and personal travel allowance enforcing downside pressures on the parallel market, the move by the CBN to sell dollars to retail users via commercial lenders was logical.
“While the policy may create some transparency, liquidity and efficiency in the Nigerian FX markets, this does not solve the overriding problem of multiple exchanges.


source: http://www.weeklypostng.org/2017/02/breaking-osinbajos-new-policy-crashes.html?m=1

Continue your great moves Ag. President

Thank you Prof. Yemi Osinbajo.

I would love to know whether anybody has been able to buy US Dollars at 460 or 470. Something tells me these black market folks are buying peoples US Dollars at a low rate but are not selling US Dollars at a low rate.

All those business men and women that have been selling things to me at high price using dollar as excuse this week we go enter one trouser together.
I will just do my calculation based on current dollar price pick what I want in your shop and pay you exact money so I won't need to ask for change.
Police station for my area be on alert, I am ready for a show down.

sosy25:
I would love to know whether anybody has been able to buy US Dollars at 460 or 470. Something tells me these black market folks are buying peoples US Dollars at a low rate but are not selling US Dollars at a low rate.

They bought at a high rate. They don't want to make losses and sell at a reduced rate. Their prayer is that things go back to the way it was. If it does after a while, they'll be forced to capitulate

Thanks be to God.
Ag. President, weh done sir