CBN sells dollars at 305/dollar on spot market

(Last Updated On: November 15, 2017)


By Tinuade Salami

The Central Bank of Nigeria (CBN) has on Tuesday sold dollars at N306 for the second time, after maintaining a level around 305/dollar on the official spot market for two months.

Reports say the move was minor which according to trader was to signal a change in foreign exchange policy.

The bank last sold dollars at N306 on the spot market in September and had sold the currency as low as 306.65 in July.

Dollar shortages had gripped the economy as crude sales, Nigeria’s mainstay, plunged at the start of an oil price rout in 2014.

This triggered a recession last year and frustrated businesses, which had to find dollars on the black market as a result.

The CBN has set up at least different six exchange rates in order  to resolve the currency crisis, after devaluing the currency for retail users in February and allowing foreign investors to trade the naira at market-determined rates.

The naira was quoted at around 360/dollar for investors, near the parallel market rate and at a level at which it has traded for more than a month.