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HomeTop NewsNigeria's naira firmer 1.79% at parallel market to N493/$

Nigeria’s naira firmer 1.79% at parallel market to N493/$

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…also gains at I&E window by 0.12%

By Oludare Mayowa

Nigeria’s naira firmed against the dollar on the parallel market on Thursday, gaining 1.79 percent at the close of the market to N493 a dollar, its biggest gain since the regulatory bank announced the adoption of NAFEX rate as its anchor rate.

The local currency strengthened to N502 to the dollar at the black market on Wednesday from N505 it closed the previous day, making it the second consecutive day gain.

Traders attributed the sustained gain in the naira value at the street market to the improvement in dollar liquidity at the Bureau de change as well as banks.

Sources said people traveling on business trips can now access a maximum amount of $5,000 for each trip from banks as part of the Central Bank of Nigeria (CBN) efforts to support the local currency.

The CBN, sources said has increase dollar allocation to banks to enable them to meet the need of travelers, medical and school fees.

At the Investors and Exporters (I&E) forex window, the naira appreciated by 0.12 percent as the dollar was quoted at N411.50 against the last close of N412.00.

Traders said most participants maintained bids between N387.67 and N420.97 per dollar.

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The International Monetary Fund (IMF) on Thursday said that the CBN should unify its exchange rate windows and establishing a market-clearing exchange rate.

Also, the World Bank on Tuesday said “Even though the nominal IEFX rate has been depreciating, which has helped to alleviate inflationary pressures, it has not been doing so fast enough to equilibrate the FX market.

“When there is a divergence between the official/IEFX rate and the parallel FX rate, the parallel rate is the one most associated with food price dynamics.”

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