The Central Bank of Nigeria (CBN) has sold about $50 million to foreign investors and forward marketers. This, it believes will test the response of the market to foreign exchange (forex).
The reserve bank had stalled the sale of dollars for a while due to monetary policies and economic issues.
The demand for dollars in Nigeria is usually busy and consistent as the economy of the country largely depends on importation. This has forced entrepreneurs to search for forex in the black market and use their offshore accounts.
Traders disclosed to Reuters News Agency that the apex bank offered 150 days to forward on the currency, since last Monday and also sold forex on the spot market. Also, a spokesman for the CBN told Reuters that the open market sale of dollars would help the Naira gain more exchange weight against the dollar.
Perhaps, the new strategy of selling dollars would let the CBN gain more insights on the market dynamics, as opposed to the traditional method of little regulation.
Although investors in the country are worried about the dollar shortage, the reserve bank has encouraged them to be patient as the economy is still regrouping from the damages of the pandemic recession.
Last Tuesday, the Naira stood at around 10 percent on the black market to 435, against the dollar, while the official rate at various financial institutions was 380.50 Naira.