Naira Appreciates To N498/$ As Reserves Hit $28.3bn


Having depreciated in value to N500 to the dollar at the parallel

market, the value of the naira appreciated to N498 to the dollar, the

value it had been trading for weeks or weeks, even as external

reserves rose to $28.28 billion the highest in the year highest in a

year.

The naira however remained stable at N305.25 to the dollar at the

interbank market, on the website of the Association of Bureau de

Change Operators; the naira was quoted at N315.38 to the dollar.

Demand for the greenback grew and the Central Bank of Nigeria rationed

dollar supply, having sold $660 million in 3- and 5- month currency

forwards at an auction aimed at clearing a backlog of dollar demand.

Traders however said the dollar sale was not enough to satisfy the

market.

Data on the website of the apex bank showed that the nation's external

reserves has risen by 7.89 per cent since the beginning of the year.

Traders said while the apex bank has been selling dollars on the

official market to support the naira, dollar shortages were causing

the naira to weaken on the black market.

Head of Africa Research at Standard Chartered Bank, Razia Khan said,

"Despite rising foreign exchange reserves, it is the amount of forex

that is supplied that matters.

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