The naira strengthened to a recent low of N390 to the US Dollar on Wednesday, as it continued a trend of gains off recent policies by the Central Bank of Nigeria.
These policies, mainly the injection of substantial amounts into the forex market, have been built on meeting the high demand for the dollar and mitigating scarcity. Operators of Bureau de Changes are reportedly unhappy with this development.
Most operators have been affected by the rapid gains in the value of the naira; and some have reportedly stopped buying dollars as they prefer to wait till the gains peak and the exchange rate stabilises.
According to CBN Governor, Godwin Emefiele, who spoke at the end of the Monetary Policy Committee meeting on Tuesday, the CBN intends to sustain the policies, with the aim of driving the naira to make consistent gains against the dollar.
The Naira also rose to N510 against the Pound and N415 against the Euro respectively.
Early in the past year, the naira fell to an historical low of over N500 naira to the US Dollar, off failing foreign reserves and a severe scarcity of forex that was compounded by increased demand.
This recent development comes as Nigeria’s foreign reserves crossed the $30 billion mark in the past month.
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