TheCable

The Nigerian naira appreciated at the interbank market on Wednesday, making its first daily rise since the start of the new foreign exchange regime.

The naira, which closed trading at the interbank market at 284 to the dollar on Tuesday, improved to 281.50 at the close of trading on Wednesday, following Central Bank of Nigeria (CBN) intervention.

The local currency was stable at 283 to the dollar on Tuesday before sinking to close at 284/$1.

According to Isaac Okorafor, spokesman of the Central Bank of Nigeria (CBN), the bank sold $4.02 billion on the first trading day of the regime, and about $100 million was sold on the second day, but both sales were not enough to lift the naira which fell below 286/$1.

The CBN also sold forex on Wednesday at the interbank market, which eventually succeeded in lifting the naira to its first daily gain since the new regime commenced.

On the parallel market also, the naira firmed to 333 against the dollar in Lagos and 330 in Abuja, from 337 on Tuesday.

The British pound however depreciated below N480, while the Euro remained relatively stable within the range of 380 to 387.

Bureau de change operators have said they have the capacity to crash the rate between the naira and the dollar in the space of a month.