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Forex: Anxiety as CBN prepares to pump more dollars in market

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Traders in foreign exchange are anxious following news that the Central Bank of Nigeria, CBN, will this weekend, pump more dollars into the market.

The move is in continuation of CBN’s strategy to strengthen the value of the Naira.

Recall that the apex bank on Thursday explained why the Naira was gaining against major foreign currencies.

On Friday, it was gathered that the CBN hadd concluded plan to release an additional $350m into the forex market.

This will bring the total to $570m, the anount injected into market in the last seven days to further crash the value of the dollar.

Last week, the value of the Naira recorded the highest and fastest gain of 11.9 per cent, at parallel market, in over three years.

This occured as CBN sold a total of $372.4 million to ease the pressure on the local currency.

Already, there is heightened fear among traders and other market participants who are yet to recover from the losses of the last two weeks due to sudden appreciation of the Naira.

But financial experts say the Naira will continue to appreciate if the status quo was maintained.

CBN has reiterated that with improving reserve levels, it was determined to make forex available to all genuine customers through their banks, advising those hoarding the greenback to reduce their losses by selling their dollar stock.

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