The naira has continued to strengthen on the parallel market on since Monday to close at N435 to the dollar, stronger than N450 to the dollar at which it closed last Friday, as the Central Bank of Nigeria (CBN) continued to relentlessly pump the Greenbank into the interbank foreign exchange market to meet the demand of bank customers.
But the buy rate of the greenback rose slightly to N430 to the dollar Monday, against N440 last Friday.
Several parallel market operators who had been stockpiling dollars for months were seen lamenting that the CBN’s intervention was forcing them to offload their dollars at a loss.
But as they bemoaned their losses, market analysts cautioned that they were likely to incur more losses, as the CBN, in keeping with its determination to increase liquidity in the FX market Monday pumped a fresh $180 million into the interbank market.
A breakdown of this amount showed that the CBN sold $100 million through its special wholesale intervention forwards and pumped an additional $80 million to the banks, specifically for school fees, medicals, and Business and Personal Travel Allowanced, among other invisible transactions.
CBN also said it would with “immediate effect give Travelex $4 million weekly to satisfy the demand for travel allowances at the Lagos and Abuja airports”.