Naira Holds Position amidst Rising Inflation Worries
The Nigerian local currency, the naira, holds its position against foreign currencies across foreign exchange markets on Thursday as inflation worries increased. National Bureau of Statistics report on consumer price index that measures headline inflation rate signal that price level worsened in August 2022.
Nigeria’s headline inflation rate inched upward by 88 basis points from 19.64% in July to 20.52% in August amidst a worsening food index. The exchange rate in the parallel market was steady at N705 to a United States dollar.
Meanwhile, the Naira moderately appreciated at the Investors and Exporters window exchanging at N436.33. The figure represents an increase of 0.04 per cent compared with N436.50 to the dollar on Wednesday. The open indicative rate closed at N434.75 to the dollar on Thursday.
An exchange rate of N438.45 to the dollar was the highest rate recorded within the day’s trading before it settled at N436.33. The Naira sold for as low as N420.50 to the dollar within the day’s trading. READ: Oil Slides on Recession Worries, Rising Dollar
A total of 118.20 million dollars was traded at the official Investors and Exporters window on Thursday. In the past week, demand has been strong, greeted by low foreign currencies supply despite relatively healthy external reserves of about $39 billion. # Naira Holds Position amidst Rising Inflation Worries
