The naira appreciated at the beginning of business this week as investors and traders await the the release of modalities of the flexible foreign exchange policy by the Central Bank of Nigeria (CBN), selling at N365 to the dollar at the parallel market.

The value of the naira had dropped last week selling at N370 to the dollar as speculators mopped up foreign exchange in the market in anticipation of a devaluation of the currency by the CBN. Traders said speculators had mopped up dollars while those with foreign exchange held back from selling, causing the value of the local currency to drop.

As at Friday, the naira sold at N370 but had dropped to N365 to the dollar at the close of business yesterday, a 1.4 per cent appreciation.

The apex bank is set to release the modalities for he flexible foreign exchange by the end of this week having consulted with managing directors of banks at last week’s Bankers Committee meeting in Abuja.

It had also held consultative meetings with stakeholders including investors, fund managers and money market operators in a bid to strike an equilibrium and produce a workable policy that would bring price stability to the naira.