Nigeria’s central bank recently sold $15.83 million to currency exchange bureaus at a more favorable exchange rate compared to the official market. This move is aimed at boosting the supply of foreign currency in the country.
The official market quoted the naira at 1,315 per dollar, according to data from the London Stock Exchange Group.
The central bank sold $10,000 each to currency exchange operators at 1,021 naira per dollar, instructing them to resell with a markup not exceeding 1.5% above the purchase price.
This strategy aims to inject liquidity into the market while also controlling the exchange rate of the naira, which has been strengthening recently. The naira’s surge follows measures taken by the central bank, including raising interest rates and easing restrictions on foreign participation in auctions.
Central Bank Governor Olayemi Cardoso clarified that the recent decline in reserves is not related to defending the currency, indicating the bank’s intention to allow market forces to influence the naira’s value.
This move comes as part of broader efforts to stabilize Nigeria’s currency and enhance economic stability.
