AFRICA: NIGERIA

Naira now 300/dollar as forex supply slows

The naira rose further on Wednesday against the United States dollar at the parallel market to 300 from 310 on Tuesday. The local currency, which closed at 391 against the greenback last Thursday, had risen to 375 and 310 on Monday and Tuesday, respectively.

“The dollar supply in the market is reducing; however, the naira may gain further significantly before reaching equilibrium,” according to reports. The local currency began its recovery after President Muhammadu Buhari had reiterated its stance not to devalue the local currency on Saturday.

While linking the recent gain recorded by the naira to significant supplies of forex to the market, forex dealers said the losses recorded by the local currency in recent weeks were “artificial and fueled by the activities of currency speculators.”.

However, a bureau de change operator, Mr. AbdulSalam Quadri, said the naira gained marginally on Wednesday, compared to what it gained on Tuesday, because forex supplies to the market were drying out gradually. He said the local currency might not record any significant gain in the coming days.

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