Banks Trade FX at ₦314.50 on Interbank Market

Nigeria’s foreign exchange market saw transactions worth $1.34 million at its interbank window on Wednesday at a rate of 314.50 naira per dollar, as commercial banks traded the local currency at below the central bank rate.

The central bank has used a rate of around 306 to supply dollars to banks since it introduced a multiple exchange rate system in February.

Nigeria has at least five rates, which it has used to manage pressure on the naira and to manage what the central bank described as “frivolous” demand for dollars at the peak of a currency crisis that began two years ago.

In, April the bank allowed foreign investors to trade the naira at a market-determined rate, which has weakened to around 360.

It was quoted at around 363 per dollar at retail exchange bureaus on Wednesday.