The Central Bank of Nigeria, CBN, has strengthened its exchange rate peg slightly to N196.97 to the dollar on the interbank market on Monday, October 26, from the mark of N197.00 set two weeks ago.
According to traders, the regulator had announced the change in currency peg via a message, making this the 10th adjustment since the bank introduced tight currency controls in February.
A dealer said:“The central bank sent a broadcast today advising N195.97/N196.97 as buying and selling rate on the interbank market at its intervention session.”
Traders said a unit of French Total had sold $90 million to some lenders at the interbank market, but the effect was minimal as the exchange rate remained fixed. Banks are allowed to buy dollars from local units of oil firms at a margin of two naira above the fixed rate.
The central bank has resisted calls to further devalue the naira in the face of a slide in vital oil revenues.