Naira dips to N460/$1 as CBN intervention fails to contain speculation

Adebayo Obajemu

Forex turnover jumped by a record of 1540.6% as Nigeria’s exchange rate at the NAFEX window remained stable to close at N386/$1 during intraday trading on Monday, September 14, 2020.

In reverse, the naira dipped to close at N460/$1 at the parallel market despite the third round of forex allocation to BDCs on Monday.

At the black market where forex is traded unofficially, the Naira fell against the dollar closing at N460/$1 on Monday, going by information obtained from Abokifx, a prominent FX tracking website.

These figures represent a N5 dip when compared with the N455/$1 that it exchanged on Friday, September 11.

Recall that local currency has strengthened by about 7.8% within the last one week at the black market, as the Central Bank of Nigeria introduced some measures targeted at exporters and importers in order to try to boost the supply of dollars in the foreign exchange market and reduce the high demand for forex by traders.