Naira Gains N5 Against Dollar

SAN FRANCISCO, March 02, (THEWILL) – The naira gained across segments of foreign exchange (FX) market following foreign exchange inflows, according to THEWILL findings.

Aminu Gwadabe, Acting President, Association of Bureau De Change Operators of Nigeria (ABCON), who disclosed this, also said that speculation and hoarding of dollar had reduced drastically.

Consequently, naira gained N5 or 1.5 percent each against the dollar at the autonomous and parallel markets and closed at N315/$ compared with N320/$ the previous day at the autonomous market, while it closed at N320/$ as against N325/$ the previous day at the parallel market.

The local currency closed stable against the greenback at N199.37k/$ at the interbank FX market, according to data from FMDQ.

However, the CBN's clearing rate at the interbank market remained unchanged at N197/$, data from FMDQ indicated.

Gwadabe said on phone that there was volume of forex transaction from Dubai via Nigeria, which had helped to shore up the nation's currency.

“Naira is gaining strength now. Speculation and hoarding activities have drastically reduced. Also, the neighbouring countries are bringing inflow,” Gwadabe said.

Analysts had said the naira would stabilise at N300/$ after sharply appreciating in value for the four days.

Ayodeji Ebo, head, investment research, Afrinvest Securities Limited, had said with time devaluation had to be considered based on depleting foreign reserve now at $27.8 billion, as of February 22, occasioned by low oil prices.

The BDC operators had asked the CBN to review the policy of dollar importation into the economy for the purpose of defending the naira.

Balami, Dahiru Hassan, member of the MPC, said at January Monetary Policy Committee meeting that the FX market had been relatively stable, particularly in interbank rate, which had fluctuated between N196 and N197. However, this is possible due to earlier policies of the CBN.

Story by David Oputah