Naira Closed at N1,534.72 as FX Pressure eased
The Naira closed the week on a positive note, gaining 4.52 kobo against the U.S. dollar at the official market on Friday. The local currency exchange rate popped as pressure from foreign currency demand eased at the official market.
According to the latest figures from the Central Bank of Nigeria, the Naira traded at N1,534.72 per dollar. The figure represents a modest gain of 0.05 per cent on Thursday, when it was valued at N1,534.79 to the dollar.
The Nigerian forex market trended on the FX support provided by the Apex Bank to strengthen the supply side. The authority intervened in the local forex market to enhance and ensure naira’s stability.
The naira had experienced minimal losses earlier in the week, trading at N1,535.62 on Wednesday and N1,535.24 on Tuesday. The trading week began with a minor decline of 20 kobo on Monday.
The exchange rate movement between the official and parallel markets continues to remove speculative trading, reflecting an effective pricing mechanism.
At the black market, the exchange rate settled at N1530 in the absence of significant pressure from unofficial fx users. Hence, traders anticipate a possible reversal, as it has now become cheaper to bids for FX from the Bureau de Change (BDC) operators.
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