Naira Gains At The Official Market (See New Value)

The naira gained yesterday as it got stronger against the dollar after crashing on Monday over the government’s decision to allow it float freely.

After the naira crashed on Monday selling 288.8 to the dollars following the Central Bank’s decision to allow the naira float freely, it was a different ball game on the second day of trading at the new interbank market as it closed at 284.83 against the United States dollar on the back of further intervention from the Central Bank of Nigeria.

The naira gained as it exchanged at 284.83 to the United States dollar. The new gain was as a result of the central bank’s intervention on Tuesday to sell dollars at the interbank market after floating the naira failed to attract trading between banks due to liquidity concerns, Reuters quoted traders as saying.

A total of $31m, sold between N282 and N285 per dollar, was done around 12pm, which traders said was an intervention by the central bank. The interbank market quoted the total traded volume at $73m.

The naira firmed to 281 after the dollar sales, recovering from a low of 287 it touched earlier on Tuesday.