The Nigerian Naira has made a huge gain at the
parallel market as it now trades at N460 per United
States dollar on Friday, February 24.
The Naira gained 40 points to trade at N460 from
the N500/dollar rate on Thursday, February 23.
The local currency also appreciated against the
Pound Sterling to trade at N575 from N600 and
strengthened against the Euro to trade at N480
from N510.
Dollar to Naira
The Naira's strength over the dollar can be
attributed to the Central Bank of Nigeria (CBN)'s
adjustments to its forex policy.
The new policy is aimed at boosting forex supply
to enable commercial banks meet the needs of
customers seeking dollar, to pay school fees and
medical bills overseas, as well as personal travel
allowances.
The CBN will next week begin the weekly sale of
$1m to each of the country’s 21 commercial
banks at N375/dollar to clear a backlog of
demand for retail users, and to try and narrow
the premium between the official and black
market rates.
