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HomeTop NewsNigeria's naira firms on official, parallel forex market despite shortages of dollar

Nigeria’s naira firms on official, parallel forex market despite shortages of dollar

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By Oludare Mayowa

Nigeria’s naira appreciates across the segments of the foreign exchange market on Wednesday, a day after the Central Bank of Nigeria (CBN) rate-setting committee hike its interest rate to 18 percent.

The naira appreciated against the greenback on the official Investors and Exporters’ forex window by 0.11 percent to N461.50 against the dollar.

Also, the local currency rallied at the parallel foreign exchange market to N746 to the dollar.

On the official window, the naira traded at N462 to the dollar the previous day while it was exchanged at N752 to the greenback on the parallel market on Tuesday.

At the I&E FX market, traders said most participants maintained bids between N460.00 and N551.00 per dollar.

READ ALSO: Nigeria’s equity market sustains gain as buying interest in GTCO pushes up index

Nigeria currently facing a dollar shortage, leading the regulatory bank to ration forex on the official market while banks have reduced the amount of dollars sold for Basic Travel Allowance (BTA) and school fees.

Last week, some banks extended the processing period for international school fees and upkeep requests through Form A to 120 days from the previous 60 days and slashed the amount to be disbursed to customers.

For instance, in an email to customers, First Bank, the country’s oldest lender, attributed the latest decision to the “limited foreign exchange supply in the industry.”

Aside from the school fees and upkeep for students studying abroad, the bank has also slashed Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) to a maximum of twice annually per applicant, to the tune of $2,000 per application.

Both BTA and PTA are used to be a maximum of $5,000 per application and can be obtained four times a year.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com, Newsroom +234 8033 964 138)

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