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
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
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.