Naira gains N1 against dollar, trades N242/$1on parallel market

Apart from weeks of tumbling, the naira yesterday showed signs of gradual recovery as it was up by N1 against the dollar, having sold for N242/$1 on the parallel market against the N243/$1 it traded the previous day.

 The nation’s currency had been on a free-fall since the Central Bank of Nigeria (CBN) on June 23 released a 41 item list of goods and services that are not valid for foreign exchange, with the naira hitting record low of N245/$1.

The naira exchanged for N198.95/$1 on the interbank market yesterday, which was almost N2 above the apex bank pegged rate.

The CBN had last week adjusted its exchange rate peg from N196.95/$1 to N197/$1 as part of measures to bridge the gap of the exchange rate of the naira on the interbank market and parallel market.

The President, Association of Bureau de Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe told Hallmark that low activity at the forex market was responsible for the seeming strengthening of the naira, which was occasioned by the fear that the apex bank may soon further devalue the currency.

But the CBN has reiterated that it has no immediate plans to further adjust the value despite calls for international organizations that devaluation was inevitable.

It vowed to continue to defend the nation’s currency and has been employing different monetary policies in the bid to stabilize the naira.

The apex bank had also stated that it is unperturbed over the slipping of the naira at the black, arguing that it is just an insignificant fraction of the country’s forex market.