Street traders were already buying dollars at the rate of N950 at the weekend as against N1,130 bought on Thursday last week.
There has been a steady rise in foreign exchange reserves in the last one month, as naira strengthened against the dollar, with the Central Bank of Nigeria clearing part of the FX backlog, a development seen to restore confidence in the economy. "The CBN is clearing only forwards to banks. I understand that it's done for CIti and two other international banks. I believe that their swap positions with the CBN are much smaller than what they have with the local banks such as Access, Zenith, UBA, among others," he said.
"The government has told us the steps they are taking to improve liquidity. They talked about NNPC, swap or forward sales, which were to bring about $3 billion, recently they talked about $10 billion expected into the economy. So, it is possible that some of those things have started to trickle in and just as they said, their priority is clearing off the backlog in order to begin to restore confidence in the system.
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