Naira rebounds after week of depreciation, trades at 390

After one week of depreciation, the naira appreciated against the dollar at the parallel market on Tuesday, trading at 390.

The nation’s currency traded at N380 (buying rate), and N390 (selling rate), stronger than N395 recorded on Monday, while the pound sterling and euro closed at N480 and N415 respectively.

At the bureau de change (BDC) window, the naira was sold at N362 to the dollar, while pound sterling and the euro closed at N483 and N430 respectively.

Trading at the interbank market saw the naira close at N306.25.

Traders at the market said the intervention by the Central Bank of Nigeria (CBN) at the different segments of the foreign exchange market was driving the strengthening of the naira against the dollar.

Aminu Gwadabe, president, Association of Bureau De Change Operators of Nigeria (ABCON) had predicted the appreciation of the naira.

Gwadabe said the improved inflows of diaspora remittances into the economy in spite of falling oil prices would fast-track rates convergence and unification.

The CBN remained resolute in its efforts to boost liquidity at the interbank market and the BDC sector of the foreign exchange market.

The apex bank had earlier directed BDC operators to credit their balances as the apex bank made moves to increase the apportioned amount to the latter from $8,000 to $10,000 and sell forex to them twice weekly.