The value of the dollar continued to diminish against the naira as the local currency was traded at N390 to the greenback on Thursday evening in Abuja.
NAN reports that the naira had also appreciated against the Euro, exchanging at N400 while remaining stable against the Pound Sterling at N465.
The last time the naira traded at between N390 and N400 to the dollar at the parallel market was in August 2016. With the gains made by the local currency in the last five weeks, the naira inched closer to one of the Central Bank of Nigeria’s (CBN) key foreign exchange policy objectives of an exchange rate convergence.
On Wednesday, when the dollar traded for N400, it marked the beginning of true convergence of official and black market foreign exchange rates. At the interbank market, the naira traded for N375 to the dollar for invisibles and N307 to the dollar for manufacturers and importers of raw materials eligible to buy forex from the segment of the market.
The significant gains made by the naira at the parallel market, according to market analysts, is a reflection of the improved confidence in the Forex market following the sustained dollar interventions by the CBN since February.