Naira firms up as CBN sells $80m

The Nigerian naira on Wednesday firmed up on the parallel market, after the Central Bank of Nigeria (CBN) sold $80 million.

The naira was quoted at 221 to the dollar on the parallel market, up 1.36 per cent on the day, after dollar liquidity rose, traders told Reuters.

The apex bank sold $80 million to Bureaux De Change (BDC) operators at N197, helping the local currency gain strength on the parallel market.

It was sold at N224 on Tuesday.

Aminu Gwadabe, president of Nigeria’s Bureaux De Change (BDC) association, said in a bid to stabilise the naira, CBN has been selling dollars to BDCs twice in a week since August 3.

The naira has been fluctuating within the range of 210 to 240 since the open of the month, with no stable stance on any particular value.

Meanwhile, the report says the demand for the dollar has been growing on the parallel market because many Nigerians have been buying the dollar in anticipation of summer vacations.

On the interbank market, the naira ended at the apex bank’s pegged rate of 197 to the dollar.