Forex: Naira depreciates further, sells at 410 to a Dollar.

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[Abuja]–The naira depreciated further in the parallel market yesterday as the parallel market exchange rate rose from N407 on Wednesday to N410 per dollar at the close of business yesterday due to increased demand for dollars.

This depreciation is being witnessed despite the intervention of the Central Bank of Nigeria.

However, the CBN has increased weekly dollar sale to bureaux de change (BDCs) operators by 100 per cent to $40,000 per week per BDC effective from next week in order to ensure availability of the green currency.

The apex bank also disclosed that demand for dollars by banks fell  by 65 per cent during its last foreign exchange auction.

Confirming the increased dollar sale to BDCs, President, Association of Bureaux De Change Operators of Nigeria (ABCON) told Vanguard: “The CBN has increased dollar supply to each BDC. From next week, the CBN will sell $20,000 to each BDC twice every week.”

Confirming the decline in dollar demand by banks, Acting Director, Corporate Communications Department, CBN, Mr. Isaac Okoroafor said that the banks were only able to pick $45 million out of the $100 million offered by the CBN on wholesale spot.

It will be recalled that the CBN made special interventions in the Bureau de Change Segment of the forex market and capped up an eventful period with the opening of a new window for Small and Medium Enterprises (SMEs).

These special interventions are in addition to over $500 million dollars offered to dealers in the wholesale and retail segments in the past week.

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