Naira appreciates against other currencies

The Nigerian Naira on Tuesday, October 11, appreciated by N3 against the United States dollar at the parallel market  as it currently trades at N470 compared with N473 to the greenback which it traded on Monday.

This is just as  the Federal Government of Nigeria through the central bank, plans to sell N138.16 billion in short-dated treasury bills at an auction today (Wednesday), the apex bank announced yesterday.

The local currency also firmed against the British Pounds,   trading at N580 and N510 to the Euro from N590 and N512 respectively,  as was posted on Monday, October 10.

At the official inter-bank market, the Naira traded at N304.75 to the dolar from N306.71 posted on Monday.

Reacting after, Aminu Gwadabe, the president of the Association of Bureau De Change Operators, said that the regulatory authority had to review the official selling price of dollars to BDCs to encourage Nigerians in Diaspora, whose remittances was being sold to BDCs.

He said the sustained appreciation of the nation’s currency would discourage the patronage of unlicensed parallel market traders.

Meanwhile, in a public notice, the central bank said it would raise N36.78 billion  in three-month papers, N35 billion in six-month bills and N66.38 billion in one-year bills. Payment for the purchases would be made on Thursday.

Nigeria issues treasury bills to raise cash to fund the budget deficit, manage banking system liquidity and curb rising inflation.