For the first time in over seven months, the Naira was exchanged at the black market at N378 on Friday.

Again, with the Naira gaining stability at all ends, there is a renewed optimism that the desire of the Central Bank of Nigeria (CBN) to achieve rates convergence between the Interbank and the BDCs markets appears to be in the horizon.

With yesterday’s record, the local unit gained about one per cent over Thursday’s transaction at N380/$ in a move that has seen the currency rebound gradually and steadily in the last three weeks.

At the current rate, the spread between parallel and the new official (retail) segment of the market, where intervention is done at N375/$, stands at N3. The CBN had last month unveiled a new policy that deregulated the retail segment of the forex market, which allowed access to travel allowances, school fees and medical tourism.

Besides, it has intervened persistently in both the interbank and forwards contract market with over $1.5 billion since the new policy, which now crashed the parallel market rate.

Author: Yemi Olarinre