Home Business Naira rebounds at parallel, black markets

Naira rebounds at parallel, black markets

by Business News Report

The Naira on Monday rebounded to gain N6 against the dollar following the Central Bank of Nigeria’s (CBN) plan to upwardly review the weekly Forex cash sales to Bureau De Change (BDC) operators. The appreciation was recorded at the parallel and black markets. A check in Lagos revealed that the Naira sold for N202 at the two markets from the N208 it was traded on Friday Jan. 23. It also exchanged against the pounds at N297 and N295 at the BDCs and the black market, respectively. Naira to the Euro sold for N230 at the two markets.
The Central Bank of Nigeria (CBN) on Jan. 23 reviewed the weekly Forex sales to BDC operators. The CBN said the decision was part of the ongoing review of developments in the foreign exchange market and to deepen the BDC’s segment. As a result, the CBN reviewed the weekly Forex cash sales to BDCs upward from 15,000 dollars to 30,000 dollars with effect from Wednesday Jan. 28.
The decision will make the CBN sell to BDCs at the prevailing interbank rate while BDCs are expected to sell not more than 3.5 per cent above the bank’s selling rate. BDCs are also to ensure that Naira not sold are returned to the CBN within 48 hours of purchase.

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