Business

Exchange rates stable as CBN increases forex allocation to banks

Published

5 years ago

August 11, 2021

The Naira to US Dollar exchange rate remained unchanged in both the parallel market and the Investors and Exporters (I&E) segments of the foreign currency (FX) market.

This comes as the Central Bank of Nigeria (CBN) has raised dollar sales to banks by more than 200 percent, as promised on July 27, 2021.

Following its decision to discontinue foreign exchange supply to the Bureau De Change, the apex bank promised guaranteed dollar supply to banks.

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Banks got more than $200 million in the first week following the BDCs ban, which CBN has increased further in the past few days.

This development appears to have left black market traders perplexed as to what to do.

According to data from AbokiFX, the value of the local currency against U.S currency remained flat at N510/$1, same rate it traded since last week.

However, Naira appreciated by N2 against the Pound Sterling at N703/£1 from N705/£1 while it closed flat against the Euro at N596/€1.

Also at the investors’ segment, the exchange rate of the domestic currency to the greenback remained unchanged at N411.50/$1 at the close of transactions yesterday.

Turnover for the trading day fell by 26.2 percent, or $43.54 million, to $122.52 million, down from $166.06 million the day before.

At the close of trade yesterday, the difference between the official and unofficial rates remains at N98.5.