Naira appreciates 1.15% at interbank, eases at parallel market

The Nigerian Naira on Tuesday closed in opposite directions at the  two major segments of the foreign exchange market, strengthening at the interbank and weakened at the parallel market.

The local currency for the second day this week gained 1.15 per cent to settle at N305 to the dollar after settling at N308.73 to the greenback on Monday at the official interbank market.

Traders at the market expressed hope that the local currency would continue on this recovery trajectory as more and more banks sell foreign exchange to Bureau De Change (BDCs).

The naira however, weakened against the American dollar at the parallel market after it  exchanged for N397/$1 on Tuesday as against N395 to the dollar on Monday.

Again at the official market on Tuesday, the local unit weakened against the British Pounds Sterling as it exchanged for N402.8629 compared with N400.3272 which it settled for, on Monday. It also lost some grounds to the Euro after settling at N346.5287/Euro as against N345.3372 to one Euro on Monday.

The reason for the weakening of the naira at the parallel market may not be farfetched as just recently, commercial banks defied Central Bank of Nigeria’s (CBN’s) directive for them to sell $50,000 weekly from Diaspora remittances to BDCs.