CBN Weakens Naira On Spot Market
The Central Bank of Nigeria, CBN weakened the naira on Tuesday selling dollars at 306 naira for the second time.
This is after maintaining a level around 305 naira on the official spot market for two months.
But according to traders, the move was minor and only signals a change in foreign exchange policy.
The bank last sold dollars at 306 naira on the spot market in September and had sold the currency as low as 306.65 in July.
The CBN has been intervening with dollar sales almost daily on the spot and forward markets. It sold $500,000 on the spot market on Tuesday, traders said.
It has also been tightening naira liquidity on the money market to keep treasury yields high and attract foreign inflows.
The naira was quoted at around 360 naira for investors, near the parallel market rate and at a level at which it has traded for more than a month.
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