DEVELOPING: Interbank market pushes naira to 264/$1

Following the Central Bank of Nigeria (CBN) decision to let market forces drive the position of the naira, the interbank market has pushed the local currency to 264 against the greenback.

According to Bloomberg, the interbank market rate opened around N253 to the dollar on Monday at the start of the new foreign exchange regime.

At about 11:02am on Monday, the naira had moved to 264 to the dollar at the inter-bank market, with dealers expressing extreme caution in proceeding with transactions.

A few minutes later, the naira was up to 260, which was the initial predicted position the CBN-FMDQ OTC guideline was planned to work with.

Earlier, the CBN said primary dealers of forex (banks), will be expected to make deals at N260 to the the dollar with a band from 260 to 270, while the CBN expresses optimism that the currency will settle at 250 to the dollar.

More to follow…

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