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Naira Gains Against Dollar at Interbank, BDC, Parallel Markets

By Dipo Olowookere

The local currency put up a good performance against the United States Dollar across the various segments of the foreign exchange (forex) markets last week.

For example, at the Bureau De Change (BDC), the Naira appreciated by 0.27 percent to N364/$ amid series of special interventions introduced by Central Bank of Nigeria (CBN).

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Also, the Naira appreciated at the parallel (black) market segments by 0.54 percent to close N368/$, while at the interbank segment, it gained 0.18 percent to close at N359.61/$.

This occurred as the apex bank injected the sum of $210 million into the foreign exchange market via the Secondary Market Intervention Sales (SMIS).

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In the exercise, the central bank allotted $100 million to Wholesale SMIS, $55 million each to Small and Medium Scale Enterprises, and for invisibles.

However, during the week, the Naira depreciated at Investors & Exporters Forex Window (I&E FXW) by 0.34 percent to close at N365.33/$ amid increased demand. Meanwhile, Cowry Asset said the Naira/$ depreciated for all foreign exchange forward contracts – spot, 1 month, 2 month, 3 months, 6 month and 1 year FX rate rose by 0.02 percent, 0.42 percent, 0.50 percent, 0.60 percent, 0.53 percent and 0.25 percent respectively to close at N306.88/$, N369.80/$, 372.84/$, 376.52/$, 387.17/$ and 414.53/$ respectively.

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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