Meanwhile, the naira appreciated to N340 per dollar in the parallel market due to panic selling which boosted the supply of dollars into the market.
Consequently, the premium (difference) between the official interbank market and the parallel market dropped to N68.15 from N168 per dollar last week.
Prior to, yesterday, the inter-bank exchange rate was fixed at N197 per dollar via controls and administrative measures which paralysed trading activities in the inter-bank market. But last week, the CBN introduced a flexible exchange rate regime which allows for the determination of the exchange rate by market forces of demand and supply.
Under the new regime, the CBN can intervene in the market by conducting a Secondary Market Intervention Sales, SMIS, through the sale of foreign exchange to Authorised Dealers (wholesale) or to end-users through Authorised Dealers (retail).
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