Naira gains as Dollar crashes at parallel market

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– Naira has gained two points to close the day at N379/$1 from N381/$1

– CBN injects over $205 million in to the foreign exchange market

– The idea is aimed at improving Dollar liquidity and ease pressure on the Naira

The Naira on Tuesday, May 22, continued its recovery against the American Dollar at the parallel market since it dropped to a record low of N520/$1 in February.

According to ZENITHBLOG.com findings, the local currency closed the day at N379/$1, two points better than the N381/$1 rate of yesterday, May 22, at the parallel market.

However, the Nigerian currency maintained the same rate of N490 and N420 against Pound Sterling and Euro respectively.

The Naira appreciation comes at a period when the Central Bank of Nigeria (CBN) injected $205 million into the foreign exchange market.

Dollar to Naira

Isaac Okoroafor, the acting director, Corporate Communications Department of CBN, confirmed the dollar injection in a statement, on Monday, May 22.

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According to Okoroafor: “The CBN again injected over $205 million in to the foreign exchange market.

“A breakdown of what market watchers termed as another massive intervention indicated that the sum of $100 million was released for the

wholesale segment of the market for both spots and forwards.

“Also, Basic Travel Allowance (BTA) which comes under invisibles segment garnered $50 million while the Small and Medium Scale Enterprises (SME) segment got $55 million.”

ZENITHBLOG.com earlier reported that Nigeria has been struggling with a currency crisis brought on by low oil prices which have hammered its foreign reserves and created chronic dollar shortages.

However, the CBN has resorted to regular injections of Dollars to narrow the spread between the official and black market rates.

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The apex bank has sold more than $4 billion to various sectors of the economy since it started intervening on the official market in February.

Meanwhile, Nigerians were asked if they think Buhari should hand over to Vice President Yemi Osinbajo due to his health challenges. Watch their reaction in the ZENITHBLOG.com video below

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