Naira Bounced Back to Recovery in The Black Market

The Naira after dropping sharply in the blacket market bounced back to recovery on thursday, as it appreciated to a band of N225 to N230 to a dollar, compared to N240 to the dollar at which it sold in the last few weeks.

 

Foreign exchange dealers attributed the gain in naira to excess supply of the greenback in the market, even as it looked like a lot of speculators would lose their shirts. It was learnt from a reliable source that commercial banks that presently have dollars in excess of $1 billion in their vaults have started taking desperate measures to mitigate currency risk.

 

The source, who is a bureau de change(BDC) operator, disclosed that banks have stopped accepting dollars because they have too much cash in their vaults.