The naira appreciated against the United
States dollar at the parallel market on Monday to 217, from 221 recorded on
Friday.
The naira rose on the back of weak demand for the
dollar at the foreign exchange markets.
Forex traders linked this to an improved dollar
liquidity occasioned by the sustained sales of the greenback, by the Central
Bank of Nigeria.
Reacting to the rising fortune of the local currency,
the Acting President, Association of Bureau De Change Operators, Alhaji Aminu
Gwadabe, said, “The market has started feeling the effect of the dollar sales
by the central bank in the last two weeks and tight measures introduced to
prevent cross boarder currency trafficking.”
The CBN had increased the frequency of dollar sales to
the BDC operators two weeks ago, to twice-weekly from the usual once a week
previously, in a move meant to increase liquidity in the market and support the
local currency.
Traders said bank customers were no longer willing to
hold dollars after the central bank banned dollar cash deposits into
domiciliary accounts.
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