Weeks of continued slide against the dollar, Naira has recovered and with a new wave against the dollar.
The naira recorded major gain against, closing at N680/$ at the parallel market.
The recovery of the local currency is linked to ease in dollar demand and release of huge dollars by forex speculators who wanted to take advantage of previous rate spike in the market.
The naira, which nearly hit N900/$ early last week, made a major comeback after the Central Bank of Nigeria (CBN) also injected unspecified volume of dollars into the market to boost liquidity.
A monitor of the market and rate quotes from forex dealers showed the naira is expected to sustain ongoing rally after buyers resisted further bargain with speculators pushing for N1,000/$ benchmark.
At the Investors and Exporters Forex (I&E) Window- now the official market rate- the naira is quoted at N441.46/$, data on the CBN website showed. The local currency has been stable at this window used for official transactions, but bulk of retail transactions happen at the parallel market.
Hasssan Abdul, a bureau de change operator based in Ikeja, Lagos, said the volatility in the market has subsided and stability gradually returning, with speculators transacting more cautiously to avoid losses.
Hasssan Abdul, a bureau de change operator based in Ikeja, Lagos, said the volatility in the market has subsided and stability gradually returning, with speculators transacting more cautiously to avoid losses.
He said the clampdown on illegal BDC operators by the Economic and Financial Crimes Commission (EFCC) has also helped to bring stability to the market.
“Dollar to Naira exchange rate in Nigeria black market is N680/$, according to 16 sell rates shared by the traders. The coming weeks will be difficult as more businesses resume demand for dollars to import goods for end of year sales,” he said.
