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Naira trades at N381/$

The naira resumed trading on the official market at 381 to the dollar after no quotes for two straight sessions, as the central bank unified the country’s multiple exchange rates, Reuters reported on Wednesday.

It noted that the central bank had been under pressure from both the World Bank and the International Monetary Fund for currency reforms in order to qualify for budget-support loans, and from the Nigerian government, to get more naira for its crude oil receipts.

The World Bank was expected to approve a $3bn budget- support loan for Nigeria in the coming months.

Nigeria offered multiple foreign-exchange rates, which it imposed to manage dollar demand after oil prices crashed. But dollar shortages have followed, stifling growth.

No quotes were available on the naira on the official market since Monday after the central bank last week weakened the currency at an auction.

It later lowered the official rate by 5.5 per cent from N360 on Tuesday.

Traders said the central bank sold $100,000 at 380.50 naira on Wednesday on the official market.

The naira traded lower on Wednesday at 387.32 on the over-the-counter spot market, widely used by investors and importers. It weakened to N460 on the black market.

 

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