Naira Sells 307 Per Dollar For First Time On Official Interbank Market

By Ikenga Chronicles December 5, 2017

Naira Sells 307 Per Dollar For First Time On Official Interbank Market

The naira was on Monday, sold at 307/dollar for the first time on the official interbank market.This is after the Central Bank of Nigeria(CBN) weakened the local currency marginally, which has been interpreted as a move to reconcile multiple exchange rates.

The naira has been sold for 305 and 306 for months before Monday’s move.

Ikenga Chronicles gathered that the CBN operates at least five exchange rates including the official rate used by the apex bank itself for masking pressure on the currency.

A Reuters report, claims that the multiple exchange rate system has been used to manage what the CBN described as “frivolous” demand for dollars at the peak of a currency crisis which began two years ago.

Earlier this month the Central Bank sold dollars at 306 for the second time after maintaining a level of around 305 on the spot market for two months.

Meanwhile, the CBN has sold $500,000 almost on a daily basis on the official spot market since creating several exchange rates to alleviate dollar shortages.

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