FOREX: Nigerians Reveal How Much Naira They Are Willing to Pay for a Dollar

Banks have asked customers to submit bids ahead of the start of new interbank foreign exchange trading on Monday, a senior banking official has stated.


The Banks asked clients to send them pending letters of credit (LCs) for them to resubmit and to quote a rate at which they want to buy dollars, Reuters reports.

The Central Bank of Nigeria had adopted a flexible foreign exchange regime weeks ago and had released guidelines on the new policy during the week.

The official said customers so far have submitted bids between 210 and 290 naira to the dollar.

"I got a memo from my bank yesterday asking us to contact all our customers with pending LCs to resubmit their LCs and say at what rate they would want to buy the dollars," the official said. "Liquidity will likely return to the market because central bank will now sell its dollars at higher rates."
Analysts expect that when the naira floats freely on Monday it will trade at 275 to 300 per dollar according to a Reuters poll.

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