New forex deal makes N282 to dollar at CBN’s $4b offer
• Traders, analysts optimistic • Parallel market rate crashes to N310 • New regime to increase stocks’ investment The Central Bank of Nigeria (CBN) yesterday executed over $4 billion in foreign exchange transactions as the new exchange rate regime begins, while the defied all forecasts and traded at between N253 and N281.5 to the dollar. The transactions, which were made up of $3.5 billion in forward sales and about $530 million at the interbank market, were targeted at clearing up the huge backlog of demands that have remained unmet. Forwards market, which forms part of the new policy regime, is a trading window where people can buy forex at present price for future use.The development, by extension, has aided CBN to sterilise no less than N1 trillion in one fell swoop, paving the way to curb liquidity-induced speculation, as buyers back up their purchase by immediate naira value. The Acting Director Corporate Communications of the Bank, Isaac Okorafor, said