CBN closes interbank forex market till 2016

The Central Bank of Nigeria has closed the interbank foreign exchange market till January 4, 2016.

The closure, which is the norm in the banking sector, was expected to have been done not later than Monday, considering the position of the naira at the parallel market, The Cable reported.

The naira had fallen to a record low of 280 to the dollar at the parallel market after beating what was initially regarded as a 42-year-low.

The local currency, however, appreciated to 270 on Friday, after the sale of over $20m by the CBN to the Bureau de Change operators.

The CBN is expected to pump more forex into the parallel market while the interbank FX market remains shut throughout the festive period, but it remains unclear if this will be done.

With the interbank market now closed for the next 14 days, dollar scarcity may rock the economy and the naira may further depreciate below N280.

The naira opened on the parallel market on Monday at N265 to the greenback.
[Punch]

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