Naira Appreciates Amidst Unsettle Dust
As the market continues to keep hope alive following the suspension of the Central Bank of Nigeria (CBN) governor, Godwin Emefiele, exchange rate pressures across the foreign exchange (forex) markets cooled off on Tuesday after a large depreciation recorded on Friday.
The Nigerian local currency, the naira, reclaimed part of the value lost at the Investors’ and exporters’ FX window amidst the expectation that the authority will carry out a plan to unify the exchange rate in Nigeria.
Market analysts have also expressed discomfort over the choice of acting CBN governor due to his background as a mechanical engineer – though he has been playing strong in the financial circle for decades.
For most analysts, an economist is preferable to lead the CBN, saying the culture of using bankers to lead the monetary authority has exposed the nation to risks of policy somersault in the past.
Data from FMDQ Exchange showed that the exchange rate improved to N471.67 per United States dollar demanded by companies, importers, and other market participants at the official window.
Last week, the Naira weakened against the US dollar, trading at N472.50 from N469.50 at the Investors and Exporters (I&E) windows. Likewise, the parallel market experienced a depreciation, with a fall of 0.13% to N768 from N767.
Amidst unsettled dust in the economy, the local currency recorded a marginal gain of ₦0.83 to close at ₦471.67, while parallel market players priced rates lower at ₦755.
In the oil market, Brent crude rose 3.89% to $74.63 per barrel, while WTI crude gained 3.69% to $69.60 per barrel. Oil futures were trading higher on Tuesday, as lower-than-expected US inflation.
The statistic office reported that US consumer inflation printed at 4.00%, below market analysts’ consensus of 4.10%, leading to a weakened US dollar. #Naira Appreciates Amidst Unsettle Dust Naira Steadies as Banks Issue Update on FX Purchase
