The dollar yesterday crashed further in the parallel market, closing at N368/$, after over three weeks at N382/$.
This represents N14 appreciation within the period, Aminu Gwadabe, president of the Association of Bureaux De Change Operators of Nigeria (ABCON) confirmed.
The appreciation of the naira followed nearly $5 billion sustained intervention by the Central Bank of Nigeria (CBN) in the interbank market since February.
He said the effectiveness of the CBN’s dollar injections in the interbank and the stability in the market require that the regulator reviews the rate band for bureaux de change (BDCs) downwards from N360/$ to $340/$.
Gwadabe said the naira has remained stable across the board in the near term on increased dollar supply to both the official interbank window and the black market. It has been trading around N382/$ on the parallel market in the last two weeks, while at the interbank market the naira was trading at around N305.40/$.
He said there is rapid elimination of speculation in the forex market. “The creation of SMEs and exporter/investors windows are helping to stabilize the naira. Also, the $40,000 weekly dollar interventions to the BDCs are also adding to the naira recovery. The CBN has also monitored the disbursement of the dollars allocated to banks and BDCs to ensure compliance with the set guidelines,” he said.