The naira on Thursday gained further against the dollar in the official foreign exchange (FX) market after the Central Bank of Nigeria (CBN) eased restrictions on foreign exchange and government securities transactions by banks and opened access to its discount window.
Data published by the CBN showed that the naira appreciated slightly by N2.93, as the dollar was quoted at N1,357.65 on Thursday, compared with N1,360.58 quoted on Wednesday at the Nigerian Foreign Exchange Market (NFEM).
In the parallel market, also known as the black market, the local currency steadied at N1,424 per dollar on Thursday. The gap between the official and parallel market rates widened to 4.94 percent from 4.71 percent the previous day.
The number of deals at the interbank segment of the FX market dropped by 48.42 percent from 190 on Wednesday to 98 deals on Thursday. Total turnover also declined by 53.13 percent to $79.09 million on Thursday from $168.76 million recorded on Wednesday.
Although the NFEM figures for deals and turnover were not available as of the time of reporting, activity increased the previous day, as total turnover at the NFEM rose to $607.47 million on Wednesday, representing a 228.38 percent increase from the $184.99 million recorded on Tuesday. The number of deals at the NFEM also increased by 119.89 percent from 186 on Tuesday to 409 deals on Wednesday.
