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Naira strengthens further, closes 400/$1 at parallel market

The Nigerian currency, the naira, on Wednesday gained a whopping seven points to close at 400 against 407 it traded on Tuesday.

The local currency on Tuesday had appreciated by three points from 410 sold per dollar on the first trading day of the week.

It was traded at N497 and N420 to the pound sterling and Euro, respectively, at the unofficial segment of the market.

Although at the Bureau De Change (BDC), the dollar was sold at N362 to the dollar, the pound sterling and the Euro closed at N495 and N428, respectively.

However, trading at the interbank market saw the naira close at 314.75 to the dollar, while it was steady against pound and Euro at 404.51 and 337.53, respectively.

It would be recalled that the Daily Times exclusively reported that there were strong indications that the local currency may return to gaining streak this week, against the US dollar and other major foreign currencies, due to the Central Bank of Nigeria (CBN) proposed increased dollar sale to the bureau de change segment of the forex market.

Throughout last week, the local currency was seen hovering between 405- 410 to the dollar on the parallel market, compared with 398 to a dollar the previous week.

The President of retail forex dealers, Aminu Gwadabe, had called on the government to ensure the naira remains stable on its sovereign journey, adding that there must quick review and increase security surveillance of our nation boarders and airports.

According to him, “Return of illegal foreign currency cash evacuation through our Porous borders and airports, as Dubai in UAE enjoy the illegal evacuation, operators/players compromise, sales of debit cards by banks rather than cash, maximum $10,000 cash allowable for travelers at the nation airport.”

However, Nigeria being an import dependent economy, strengthening of the local currency has said not be luck but a choice the nation have to make.

Gwadabe, therefore advised the federal government to ensure the naira remains stable on its sovereign journey by creating special purpose window for foreign investors at the BDCs sub sector like that of IMTSO to diversify streams of foreign reserve.

He requested for more liquidity to the BDCs sector to ensure sector market liquidity and availability, adding that review of allowable margin to N5 than N2 per US dollar.

“Monitoring and supervision by regulators and relevant agencies, as well as review the limit of max $10,000 allowable to $20,000 for travelers at our Airports, with localization of our products and industries.

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