parallel market

Naira continues gain, exchanges N473/$ at parallel market

The Nigeria’ Naira consolidated its gain and exchanged at N473/$ on Monday December 14, 2020 at the parallel market.

The currency had depreciated greatly in recent times, closing at a four-year low of N510 on Monday November 30, 2020.

Analysts blame illegal activities by forex speculators and dollar scarcity for the hit.

The naira however started to firm up since the Central Bank of Nigeria (CBN) relaxed the policy on foreign remittances and domiciliary accounts.

The apex bank in a statement on Monday November 30, 2020, signed by O.S. 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.

The CBN statement reads, “these changes are necessary to deepen the foreign exchange market, provide more liquidity and create more transparency in the administration of Diaspora remittances into Nigeria”.

The CBN had on February 23, 2020, explained that only electronic fund transfers into Domiciliary accounts can also be transferred from such accounts while cash deposits into such accounts can only be withdrawn in cash also.

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