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UPDATE 2-Nigeria naira eases 1.3% after plans to sell FX to currency operators

Published 28/08/2020, 10:51
UPDATE 2-Nigeria naira eases 1.3% after plans to sell FX to currency operators

(Adds closing naira rate)
By Chijioke Ohuocha
ABUJA, Aug 28 (Reuters) - The Nigerian naira eased 1.3%
against the U.S. dollar on the official market on Friday, a day
after the central bank said it planned to resume forex sales to
retail currency operators as the country reopens its airports
for international travel.
The naira opened for trade at 385.50 per dollar on the
market, supported by the central bank. It later recovered to
close at 381 per dollar, where it has been stuck since July,
Eikon Refinitiv data showed.
The central bank in a circular on Thursday said it will
restart dollar sales to bureaux de change operators from Aug. 31
after it suspended auctions in March due to a
coronavirus-induced lockdown and after a 15% devaluation.
It said retail traders cannot resell dollars bought from the
bank at more than 386 naira.
The bank moved to unify the rates this month, bowing to
pressure from international lenders to merge its multiple
exchange rates, eliminating arbitrage which has cost the country
billions in reserves as it tried to defend the naira.
It was not clear whether the opening trade of 385.50 naira
per dollar was carried out by the central bank. Bank officials
were not immediately available for comment.
With the early deal, the naira traded close to the
over-the-counter spot market, widely quoted by investors and
importers. But it was still 20% weaker on the unofficial black
market patronised mostly by individuals at 477 naira.
The naira forward traded in London for the one-year
settlement rose 3.64% to 478 on Friday.

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