The country’s external reserves fell to a two-week low and the naira eased on the black market on Friday after the Central Bank of Nigeria pledged to step up dollar sales.

This came just as the CBN said it would announce a new exchange rate for Bureau De Change Operators next week, Reuters reported.

The central bank had on Tuesday set a rate of N362/dollar for the BDC operators to sell the greenback to customers, an 11 per cent rise over the 399 it set in January.

The CBN has been selling the dollars on the official market in order to narrow the spread with the black market rate, which was quoted at a record low of N520 per dollar a month ago.

On Friday, the black market naira rate, which has firmed 17 per cent since last month due to central bank dollar sales on the official market aimed at narrowing the spread, eased by 1.8 per cent to 390/dollar, Thomson Reuters data showed.

The naira held its level at 306.35 to the dollar after the central bank sold $1.5m on the spot market.

The CBN had on Thursday said it would increase the amount it was offering to the BDCs to $10,000 per member from $8,000, but would announce a new rate on April 3.

Traders said the new rate announcement had created uncertainty and caused the naira to trade weaker on the black market.

But dollar buffers have started to decline. Traders estimate that the bank has sold more than $1bn in currency forwards since last month to boost liquidity.

The external reserves, which have risen by 16.1 per cent since the start of the year, stood at $30.29bn by March 29, but are still far off their peak of $64bn, hit in August 2008, the CBN data showed.

The International Monetary Fund on Thursday urged the Federal Government to lift the remaining foreign exchange restrictions and scrap the system of multiple exchange rates in order to revive the economy.

Economic and financial experts said they were not sure if the CBN would continue to intervene in the market, especially as the price of oil continued to decline slightly in recent times.

Some analysts believe the central bank may not cut further the N360/dollar rate set for the sale of the greenback for invisibles by commercial banks.

http://investorsking.com/external-reserves-hit-two-week-low-naira-weakens/

Normal swings. No problems there. Just like you and your boo/bae will love sometimes and will craze sometimes.

The important thing is to ensure a balance. So far so good with the Naira in 2017.

Thanks for update keep eyes peeled.

MakeADifference:
Normal swings. No problems there. Just like you and your boo/bae will love sometimes and will craze sometimes.

The important thing is to ensure a balance. So far so good with the Naira in 2017.

Well said

What the CBN is doing is just a temporary solution, now that USA crude oil is sold to many nations it has affected the price of crude oil in the international market, until we start earning income from other sources our currency might never improve. The external reserve is going down and the CBN has started having issues with the value of currency. I think the CBN needs to review its policy and probably if he feels he can do it he should resign and let other people take control of it.

Read the all in all about Ofada rice by clicking below.

https://www.nairaland.com/3579520/ofada-rice-facts-need-know

V

What goes up must surely come down!

I think even at $45 to a barrel of crude and the agricultural drive of the government looking like starting to take off ( even if just marginally) the CBN can still sustain the dollar sale to the market.

However, something needs to be done about price control. We all felt the impact of the dollar going high against the naira as if it was headed for the moon but we are yet to feel the impact of the naira gaining ground on the dollar.

People selling things like cars, electronics and their likes may have excuses because they may still have old stocks but how about others like food items. How come their prices are not coming down?

Nigerians are Nigerians' problems. If it was that the naira was crashing in the last week, they all would have hiked up their prices but it is climbing down now but they still keep the old prices. It is beyond annoying especially for those of us who are earning in dollars.

I don't mind my $100 losing face value providing the buying power is in tact but the reverse is the case now. Makes it difficult for someone like me ( if I am honest) to pray for the dollar to crash even though it would be good if it does for the sake of those who don't earn in dollars.

Buhar

It is expected with the recent policy to sell the dollars weekly to banks and bdc's... It gets worse before it gets better...

Naira rate to dollar is just so erratic like ocean waves

I don Taya O
Naira just dey go up and down like 'jangilover'

Dollar hoarders will be like "Shebi we don talk am before say CBN no go fit sustain am". If you're still hoarding, please make sure you sell it out at cheaper rate before you lose it all cos Naira will still appreciate further

Buhari is actually a fool.

Gentlemen, you may now pre-order a copy of my new book titled THE IDIOT CALLED BUHARI.

press like to order Pls.

Thanks.

How can one man cause recession twice in his lifetime?

God please may I not be remembered for causing people pain and badluck in my lifetime.

no course for alarm yet

Why naira dey weak anyhow, like man wey get E.D.

I GIVE UP ON DIS DOLLAR vs NAIRA ISSUE.

Thanks to Buhari. Reno Omokiri was right.

Not again!

Who else think PMB should go back to London? Myt not necessarily be him but somethings ain't right with him hovering around.

Thunder scatter Buhari Insha'Allah amin
useless illiterate fool

MakeADifference:
Normal swings. No problems there. Just like you and your boo/bae will love sometimes and will craze sometimes.

The important thing is to ensure a balance. So far so good with the Naira in 2017.

Hardworking BMC agent

It's expected.... As it stands now, we only have two options.

1. Continue burning our reserve to keep dollar prices low... or
2. Float the Naira fully and eliminate unnecessary middlemen...

Either way, we have to make sacrifices.

1 above will leave us in precarious situation especially with the current oil price situation.
2 will bring a lot of hardship because the exchange rate will skyrocket at first, but gradually reduce as forex remittances and FDI inflows increases.

option 2 is probably the best option.

Will naira ever be stable again?

hoping to see 1 dollar = 160 naira before this year runs out. e possible?

veekid:


Well said

he wouldn't say the same if the other party were on top.

Nebuchadnezar:
Thunder scatter Buhari Insha'Allah amin
useless illiterate fool

ESDKING:
Thanks to Buhari. Reno Omokiri was right.

Mentcee:
Buhari is actually a fool.

Gentlemen, you may now pre-order a copy of my new book titled THE IDIOT CALLED BUHARI.

press like to order Pls.

Thanks.

yankeeguy:
Buhar

When will fools with bad brains stop blaming Buhari for everything ? Is he the Finance Minister or CBN governor managing our finance?

Epiphanus20:
Will naira ever be stable again?

It will take years to recover from the damages this government has caused us.

[quote author=Mentcee post=55152372]Buhari is actually a fool.

Gentlemen, you may now pre-order a copy of my new book titled THE IDIOT CALLED BUHARI.

press like to order Pls.

Thanks. [/quote

Your book go sell so.
Too dry.

Seems like the strength of the Naira is directly proportional to that of the President. Pls give the seat to strong Osinbajo jare.... Maybe e fit boost am again