Amidst a backdrop of currency volatility, the Nigerian naira continued its downward slide, reaching a new low of 1,300/$ against the United States dollar on tuesday.
The Central Bank of Nigeria (CBN) has responded by injecting additional dollars into the market in an effort to stabilize the currency.
In a circular released and signed by Dr. Hassan Mahmud, the Director of the Trade and Exchange Department, the apex bank disclosed its sale of $10,000 to Bureau De Change (BDC) operators at a rate of N1,021 per dollar. Additionally, the CBN directed these operators to maintain a spread not exceeding 1.5 percent above the CBN rate when selling to end-users.
This is the second instance this month and the fourth this year where the CBN has taken proactive measures to ensure the availability of essential foreign exchange.
The forex market responded to these interventions, with the naira maintaining its depreciation against the dollar. The intra-day high depreciated to N1,317 per dollar, while the intra-day low slightly improved to N1,000. Total daily turnover increased to $133.65 million from the previous day’s $110.17 million.
At the parallel market, currency traders adjusted their rates, selling the dollar within the range of N1,300 to N1,320.
