The Naira experienced a notable uptick on Tuesday morning, fueled by the Central Bank of Nigeria's (CBN) strategic move to sell dollars to Bureau de Change (BDC) operators at a discounted rate. This intervention aimed to alleviate the mounting pressure observed in the black market. According to reports from BusinessDay and corroborated by multiple traders, the street value of the dollar saw a decrease, with it selling at N1,250/$, down from N1,270/$ just a day prior.
This surge in the Naira's value follows the CBN's sale of $10,000 to BDCs at a discounted rate of N1,021/$ on Monday. The apex bank's decision marks its fourth intervention in the market this year, totaling a combined $63 million since the ban on selling the greenback to the informal market was lifted. This strategic move is expected to mitigate the renewed pressure witnessed by the Naira, which experienced a setback last Friday, snapping a one-month rally, and continued to decline on Monday.
Traders remain optimistic about the Naira's trajectory, anticipating further appreciation in the coming days as a result of the CBN's intervention. The injection of dollars into the market is poised to provide relief and stability, potentially bolstering the Naira's resilience against external pressures.
