Naira strengthens, exchanges 478/$ in parallel market
The foreign exchange market closed on Wednesday December 9th, 2020 with Nigeria’s currency strengthened, exchanging N478 to the United States dollar.
The currency which had fallen to N483/$ on Tuesday firmed by 1.03 percent after banks commenced payment of Diaspora remittances in dollars to beneficiaries as directed by the Central Bank of Nigeria (CBN).
On November 30, the CBN said beneficiaries of diaspora remittances through the international monetary transfer operators (IMTO) shall have such inflows in foreign currency (US Dollar) through the designated bank of their choice.
The apex bank in a statement on the same day, signed by Ozoemena Nnaji, director of trade & exchange of CBN, said recipients of such remittances may have the option of receiving these funds in foreign currency cash or into their domiciliary account.
In compliance with the directive, banks issued notice to their customers saying they could walk into their branches to receive international money transfers in dollars.
Naira steadied at N480 to the dollar for the fifth time on Wednesday at the Bureau De Change (BDC) segment of the market.
Over 5,000 BDCs funded their accounts on Wednesday in anticipation for dollar disbursement by the CBN on Thursday.
At the Investors and Exporters (I&E) forex window, Naira appreciated by 0.08 percent as the dollar was quoted at N394.67 as against the last close of N395.00. Analysts at FSDH research said most participants maintained bids between N382.00 and N408.18 per dollar.
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I made a prediction earlier on on this. There’ll be more inflow of $ from diaspora remittances, by Jan Feb it may drop to 420. Ours is nothing short of voodoo economics. The rent collectors in government warped policies will continue to laugh all the way to their bank accounts. What a “cowtry”….