The naira closed at 455 against the United States dollar at the parallel market on Tuesday, eight days after the Central Bank of Nigeria modified its foreign exchange policy to enhance dollar supply and stabilise exchange rate.
The CBN has so far sold $780m as its steps up efforts to tackle currency speculators and bridge the gap between official and parallel market rates of the local currency.
The CBN had last Monday commenced the implementation of the reformed forex policy with a promise to sell $1m weekly to each of the 21 commercial banks in the country.
Following last week’s announcement of the new forex policy measure by the CBN, the naira commenced a gradual reversal of its previous losses, closing at 512/dollar last Tuesday.
The local currency, which had tumbled to 520/dollar last Monday, closed at 450 on Friday.
The local currency closed at 445/dollar on Monday.
Economic and financial experts have said the naira will record further gain this week but not as big as last week’s.
The Acting Director, Corporate Communications, CBN, Mr. Isaac Okorafor, said the regulator would continue to intervene in the market to maintain exchange rate stability.
He warned speculators to desist from activities inimical to the growth of the economy, saying perpetrators of sharp forex activities would regret their actions.
Foreign exchange traders said the CBN had intervened on the official market in recent days.
The Managing Director of Cowry Asset Management Limited, Mr. Johnson Chukwu, also believes the naira will rise further this week.
Chukwu said, “Confidence is beginning to return to the market. The naira will gain further but there may be resistance around N400/dollar because the CBN sells to BDCs currency at 381/dollar.
“The CBN needs to watch and sustain this intervention for weeks. They need to work with the fiscal authority to get the $2.3bn loan from W/Bank and China released on time.”