Dollar Crashes In Nigeria's Black Market
The Dollar may have won some battles but the Naira is determined to win the war.
The continuous flooding of the foreign exchange market with dollars has crashed the United States currency against Nigeria’s currency, Naira.
The Naira firmed up at the Bureau de Change (BDCs) segment on Thursday, trading at between 376 Naira and 378 Naira to the United States Dollar in Lagos, Abuja and Kano.
The crash was caused (as usual) by the interventions of the Central Bank of Nigeria (CBN).
A market survey revealed that the Naira, which sold at over 405 Naira to $1 as at Monday this week, recorded a boost.
There were indications that the appreciation of the Naira was because of policy actions of the CBN to inject more foreign exchange into the financial system.
Specifically targeting critical sectors in addition to special interventions in the areas of small businesses and bureau de changes, BDCs.
According to a source at the apex Bank, the Naira is expected to appreciate further when the BDCs receive another tranche of $20,000 purchases from the CBN.
In a bid to sustain supply of liquidity to the foreign exchange market, CBN made special interventions by simplifying the documentation process for small businesses to enable them import eligible items.