The Central Bank of Nigeria (CBN) yesterday auctioned $230 million in forward contracts on the official market after selling $370 million this week to boost dollar liquidity and help narrow the gap between the official and black market rates, traders said The apex bank also sold $1.5 million on the spot market to help keep interbank rates at N305.50 per dollar. On the parallel market the naira firmed to N490 after opening at 505, traders said.
It will be recalled that barely 24 hours after the CBN began stepping up dollar sales in the foreign exchange market in a bid to narrow the spread with the official exchange rate, the naira on Wednesday appreciated to N505 against the dollar on the parallel market. The local currency had traded at N520/$ earlier on Monday before the Apex Bank announced it had adjusted its foreign exchange policy to improve dollar supply to retail users.
But following the regulator’s statement that it will commence special weekly dollar sales to banks who will resell to Nigerians seeking forex for school fees payment, Personal Travel Allowance (PTA), Basic Travel Allowance (BTA) and medicals at a margin of not more than 20 per cent above the interbank rate, the naira appreciated to N516/$ on Tuesday
