May 22, 2018

Why exchange rate remains high amid interventions

Why exchange rate remains high amid interventions

Presently, it is exchanged at N306 per dollar at the allegedly inaccessible interbank window; N360 per dollar at Invisibles Segment; N362 by the licensed Bureau De Change operators; N369.35 at newly inaugurated Investors and Exporters window; and N370 at the parallel (black) market.

A mix of economic structure of the country, foreign exchange earnings capacity and outlook are keeping the naira value high despite interventions. The exchange rate of N197 per dollar, officially took a new turn at the wake of the adoption of the Flexible Exchange Policy of the Central Bank of Nigeria (CBN).

Presently, it is exchanged at N306 per dollar at the allegedly inaccessible interbank window; N360 per dollar at Invisibles Segment; N362 by the licensed Bureau De Change operators; N369.35 at newly inaugurated Investors and Exporters window; and N370 at the parallel (black) market.

But since February this year when CBN liberalised further the foreign exchange market, it has put no less than $5 billion, most of which are in forwards sales with maturity dates ranging 30, 45, 60 days to one year.

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