Naira Gains by 1.5% Against the Dollar on Thursday

On Thursday, naira gained 1.5% at the parallel market following some confusion between currency speculators as they wait to see the government plans surrounding its proposed increase in dollar liquidity. 

During trading on Thursday, the dollar was reported to trade at N1,120 compared to the N1,140 it traded on Wednesday at the parallel market.

BusinessDay reported what a trader at CMS said: “This is how we saw it. The dollar is coming down. Everybody is waiting to see what the government is trying to do so that we will not lose money.”

The federal government has proposed plans to increase dollar supply and digitalize FX transactions which will discourage speculative demands and stop the hoarding of FX in cash.

At the Nigerian Autonomous Foreign Exchange Market (NAFEM), Naira declined by 0.55% despite witnessing a 60.06% rise on Wednesday at the official market 

At the end of trading on Wednesday at the Nigerian Autonomous Foreign Exchange Market, dollars traded at N874.71 which was weaker than N869.91 it traded the previous day. This data was obtained from the FMDQ.

On Wednesday, naira declined to N1,140/$ on new demand pressure at the parallel market segment of the FX market.

This signifies 5.55% and 9.91% depreciation against the dollar when compared with N1,080/$ and an average of N1,046.66 exchanged on Tuesday.

On Tuesday, naira declined to trade for N1,046.66/$ following shortage of dollars in the parallel market.