Naira Trades Strong Against Dollar at Investors’ Window
The Nigerian local currency rebounds midweek after two days of depreciation that took the exchange rate above N430 per the United States dollar at the Investors and Exporters foreign exchange (FX) window.
The exchange rate in the parallel market was also steady at N675 due to demand slowdown, according to channel checks as speculators weigh trading patterns.
Data from the FMDQ Exchange platform indicates that Naira put on a strong show against the United States dollar at the Investors and Exporters window, exchanging at N429.38.
The figure represented a gain of 0.16 per cent compared with the N430.67 it exchanged for the dollar on Tuesday. The open indicative rate closed at N427.58 to the dollar on Wednesday. An exchange rate of N444 to the dollar was the highest rate recorded within the day’s trading before it settled at N429.38.
The Naira sold for as low as N417 to the dollar within the day’s trading. A total of N120.46 million was traded in foreign exchange at the official investors and exporters window on Wednesday.
Though currency traders are unimpressive with the overvaluation of the naira. However, the Central Bank of Nigeria (CBN) has persistently downplayed devaluation. READ: Naira Improves as Gross External Reserve Rises
Responding to an email, analysts told MarketForces Africa that a naira devaluation will worsen things in an already inflation-battered economy with a high unemployment rate.
However, analysts said the market has a way of correcting an overvalued local currency. At about $39 billion, it was noted that the Central bank of Nigeria has a strong buffer to defend the local currency amidst rising import payments. # Naira Trades Strong Against Dollar at Investors Window
