Categories: Business

Naira rises to 215/$1 after dramatic fall

The unusual trading of the Nigerian naira continued on Wednesday, as the currency recovered from a dramatic fall to 235 on Tuesday, trading at 215 to US$1 in the parallel market.

The naira closed at N209 to $1 on Monday evening, as banks continued to reject dollar deposits in customers’ domiciliary accounts.

Tuesday had a rather unexpected turn as it fell to N235 to $1, with analysts saying the Nigerian currency had entered the “fluid” state in which a stable rate could not be guaranteed.

According to Reuters, the naira firmed against the dollar, following central bank’s sale of about $80 million to bureau de change operators.

Aminu Gwadabe, president of the bureau de change operators, said the central bank had put on hold its directive asking them to request dollar buyers to provide their Bank Verification Number (BVN), a new biometric identification for commercial banks customers.

Last month, the central bank told bureau de change operators to request dollar buyers to provide their Bank Verification Number (BVN) in a bid to curb speculative bids.

“The BVN exercise is put on hold and there is a huge market calmness, the naira is gaining strength, we expect it to close below 215 to the dollar,” Gwadabe told Reuters.

The weakest the naira has traded to the the dollar in 2015 is N243 to $1.

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