In continuation of its strategy to further strengthen the value of the naira, the Central Bank of Nigeria (CBN) is set to pump more United States dollars into the foreign exchange market this weekend.
A source at the apex bank revealed that the CBN was set to release an additional $350m into the forex market.
The move will push the total amount that the CBN has pumped into the market this week to about $570m, in its bid to further crash the value of the dollar.
Meanwhile, the naira on Friday depreciated against the dollar at the parallel market after posting days of appreciation.
The News Agency of Nigeria (NAN) report that the nation’s currency lost N7 to exchange at N465 to a dollar after closing at N458 on Thursday, while the Pound Sterling and the Euro traded at N542 and N480.
While at the Bureau De Change (BDC) window, the Naira traded at N399 to a dollar, CBN controlled rate, while Pound Sterling and the Euro closed at N610 and N520.
Trading at the interbank market saw the Naira sold at N305.25 to a dollar.
NAN reports that the CBN injected over 500million dollars into the market, to boost liquidity, but the Naira continued to depreciate.
Traders in the market expressed concern about the depreciation of the Naira in spite the gains earlier recorded.
Alhaji Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON), said there was need for a review of the distribution mechanism.
“Many banks are selling to only clients with current accounts and not to savings account holders and there is also increasing demand for forex from our neighbouring countries.
“The different applicable exchange rates and volumes with Travelex and banks need to be harmonised and with that of BDCs to reduce friction,” Gwadabe said.