The naira has continued to gain against the United states dollar as it closed at N445/$1 at the parallel market on Monday following injection of dollars to the market by the Central Bank of Nigeria.
The CBN has sold additional $180m into the market this week, barely one week after selling about $600m. The steady supply of forex is in line with the modification made to the forex policy by the regulator. The CBN last Monday commenced the implementation of the reformed forex policy with a promise to sell $1m weekly to each of the 21 commercial banks in the country.
The local currency, which had tumbled to 520/dollar last Monday, closed at 450 on Friday.
Forex traders told our correspondent on Monday that the naira closed flat because there was no release of fresh funds into the market.
Following last week’s announcement of the new forex policy measure by the CBN, the naira commenced a gradual reversal of its previous losses, closing at 512/dollar last Tuesday.
It recorded further gain last Wednesday and Thursday, closing at 505/dollar and 495/dollar, respectively.
Foreign exchange traders said the CBN had intervened in the official market in recent days.
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