Naira Appreciates Against Dollar As Banks Sell at $1/N412

Naira Now 523 to A Dollar at Parallel Market

In line with the directive from the Central Bank of Nigeria (CBN), the naira on Monday appreciated against the dollar at the parallel market.

The development is coming up as deposit money banks set up foreign exchange teller points for customers as ordered by the apex bank. Data showed that the naira strengthened to 512 against the greenback at the parallel market from the 515/$1 at which it closed on Friday.

However, it fell by 0.02 percent to 411.50/$1 at the Investors and Exporters window, with a forex turnover of $121.08m.

According to FMDQ Group,  the naira had last week plunged to an all-time high of 525 against the dollar at the parallel market following the stoppage of the supply of foreign exchange to Bureau de Change (BDC) by the CBN.

After the  Monetary Policy Committee (PMC) meeting on Tuesday, the CBN Governor, Godwin Emefiele, announced the stoppage of forex sale to the BDCs. According to the apex bank boss,  they had turned themselves into “agents that facilitate graft and corrupt activities of people who seek illicit fund flow and money laundering in Nigeria”.

This he said made the PMC give the order that would make the CBN channel a significant portion of its weekly allocation currently meant for BDCs to commercial banks to meet legitimate forex demand for ordinary Nigerians and businesses.

In line with the directive, Guaranty Trust Bank Limited, in an emailed message to its customers on Saturday, announced that it had set up forex teller points for customers. This was also followed by other commercial banks for forex transactions in their branches.

The News Agency of Nigeria (NAN) reports that officials at the banks visited said that a dollar was being sold for N412.

Checks at Fidelity Bank, Keystone Bank, and Zenith Bank branches in Abuja showed that they all had designated teller points for forex transactions.

While confirming that the dollar was selling at N412/$1, officials at the visited banks disclosed that each traveler was entitled to buy $4,000 per quarter for personal travels and $5,000 per quarter for business travels.

READ ALSO: Naira Now 523 to a Dollar at Parallel Market

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