Naira Strengthens Against Dollar

Lagos, Nov. 11, 2016 (NAN) The Naira on Friday strengthened against the dollar in all segments of the foreign exchange market, the News Agency of Nigeria (NAN) reports.

BY DANIEL.

At the interbank market, the currency gained N1.45 to close at N304.75 from N306.50 recorded on Thursday.

At the Bureau De Change (BDC) window, naira exchanged at N385/400 to a dollar, Central Bank of Nigeria (CBN) controlled rate, while the Pound Sterling and the Euro closed at N555 and N500, respectively.

The naira gained N5 at the parallel market to exchange at N455, from N460 recorded on Thursday, while the Pound Sterling and the Euro closed at N555 and N505, respectively.

Traders at the market said that activities were low as Thursday’s raid on the market by the operatives of the Department of State Service (DSS) and Economic and Financial Crimes Commission (EFCC) had instilled suspicion among them.

Reacting to the raid, Prof. Sheriffdeen Tella, a Senior Economist at the Olabisi Onabanjo University, Ago-Iwoye, said that the raid was not a solution to the problem of foreign exchange scarcity.

Tella admitted that some elements in the currency exchange market had not jettisoned speculation and round-tripping, but said that solution to foreign exchange scarcity was improving the nation’s foreign exchange earnings.

NAN recalls that the security operatives raided some unregistered BDCs and parallel market traders over alleged arbitrary sale of foreign currencies above the official rates. (NAN)