Naira appreciates at parallel market as Central Bank disburses $280 million to SMEs, BDCs

The naira firmed against the dollar at the parallel market on Tuesday, closing at N398 to the dollar. The News Agency of Nigeria, NAN, reports that the naira appreciated from the N410 it posted at the segment on Friday.

It was traded at N497 and N430 to the pound sterling and Euro, respectively, at the segment.

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

Trading at the interbank saw the naira closing at N306 to the dollar.

Traders still expressed optimism that the naira might sustain its appreciation against the dollar as the CBN maintained its liquidity boost to all the segments of the market.

Meanwhile, The Central Bank of Nigeria, CBN, on Tuesday injected about $280 million into various sectors of the market in its determination to sustain liquidity in the foreign exchange market since the commencement of its weekly $20,000 sale to licensed Bureau de Change operators.

The bank also announced the opening of bids for $100 million wholesale request for between seven and 45 days through the Deposit Money Banks (DMBs).

Details of the intervention showed that the provision for Basic Travel Allowance, Personal Travel Allowance, medical bills and tuition received $80 million, while the Small and Medium Enterprises (SMEs) window received $100 million.

The bank’s spokesperson, Isaac Okorafor, who confirmed the releases, said along with the wholesale bid auction, a total of about $280 million was sold into the market.

Mr. Okorafor said the new window for SMEs would boost the importation of eligible finished and semi-finished items as well as enhance forex supply to the retail business segment of the market.