The naira firmed on the black market on Wednesday after the Central Bank of Nigeria (CBN) sold $1.5 billion to boost liquidity on the official interbank market. The currency reached 505 per dollar on the black market after opening at 515, exchange bureau traders said.
The central bank intervened on the official market at 304.75. The naira had hit an all time black market low of 520 on Monday. The naira has been pummeled since Nigeria dropped its peg to the dollar in June last year as its oil-producing economy suffered from the fall in the price of crude. Inflation is now running at above 18 percent at least partly as a result. The bank stepped up interbank dollar sales on Tuesday, a day after it effectively devalued the naira for retail currency sales.
“The central bank measures directing banks (this week) to sell dollars at (a) margin above the interbank rate … have aided significantly a naira rebound,” said Aminu Gwadabe, president of Nigeria’s association of bureau de change operators.
CBN on Tuesday sold $370.8 million at forward exchange rates up to 15 per cent weaker than the official rate, in a move to close the gap between official and black market rate of the local currency.
Traders said Tuesday’s dollar sales by the central bank also increased confidence in the forex market, boosted dollar supplies at the official window and encouraged speculators to sell their holdings.
LV

Bubu is working. Don't ask me how I mean cos I don't know myself.

Meanwhile, Somewhere in Bariga