The naira appreciated against the United States dollar at the parallel market on Monday to 217, from 221 recorded on Friday.
The naira rose on the back of weak demand for the dollar at the foreign exchange markets.
Forex traders linked this to an improved dollar liquidity occasioned by the sustained sales of the greenback by the Central Bank of Nigeria.
Reacting to the rising fortune of the local currency, the Acting President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, said, “The market has started feeling the effect of the dollar sales by the central bank in the last two weeks and tight measures introduced to prevent cross boarder currency trafficking.”
The CBN had increased the frequency of dollar sales to the BDC operators two weeks ago to twice-weekly from the usual once a week previously in a move meant to increase liquidity in the market and support the local currency.
Traders said bank customers were no longer willing to hold dollars after the central bank banned dollar cash deposits into domiciliary accounts.
“We expect to see more rallies in the market if the central bank could sustain its support for the naira,” Harrison Owoh, a bureau de change operator said, Reuters reported.
The naira was unchanged at the official interbank market at 197 to the dollar, where the CBN has maintained a tight control by pegging it to the rate of 197 to the dollar
The naira had weakened on the parallel market to as much as 245 to the dollar last month, on persistent dollar demand after central bank limited importers’ access to dollars on the official interbank market to buy a wide range of goods, in order to save the external reserves.
The local currency later rebounded to 216 at the parallel market as Deposit Money Banks started rejecting cash deposits in dollars a few weeks ago.
The naira had, however, weakened to about 223 last week before rising to 217 on Monday
Analysts expect the naira to continue rising, saying it is good for the economy.
The Head, Investment and Research, Afrinvest West Africa, Mr. Ayodeji Ebo, had said that the gains made by the naira was good for the economy, adding that it would help the CBN to gauge the true value of the currency in the event of a possible devaluation in the near future.
“If there is a convergence between the interbank and parallel market, the CBN may possibly review its restrictions imposed on the forex market,” he added.
A currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, said if the trend continued, the naira might rise to as much as 200 against the dollar.
dailypost reportage
The rise of the naira is the fall of some people's hard earned dollar investments.
One mans meat is indeed another man's poison.
*side eyes at Nigeria limping* ''COME ON GET UP AND WALK''!!!
Yeye...wat is the difference between this..abeg,let them use another monetary policy cuz dis naira is valueless
ReplyDeleteStella, why won't Nigeria be limping?
ReplyDeleteAre we not the ones that elected this govt?
A govt that has no direction.
A govt that believe that those that "heavily voted" for it should be treated with preference.
A govt that only talks all the time and does absolutely nothing.
A govt that believes in political witch hunting.
Your stupidity is headache inducing. You always sound like a depressed maniac.
DeleteIwo to ti ya werey tele, you come dey depressed again.
Bubu has 3years and 9months to go.
So he should turn to a magician and fix everything the previous govt scattered in yrs in just 2months?
DeleteLimping nigeria is better than the one that just sat in one place in the past that could not even crawl.
The way you reason most times scares me ..cause I just can't phathom a lot of your likes out there....
Delete@Sunshine, where do I send your kisses to?
DeleteAs in eeh sunshine tell him!! Ur comments shows how minute ur thinking faculty is!!money maker,think,read nd appreciate d effort of dis govt
DeleteYeye...wat is the difference between this..abeg,let them use another monetary policy cuz dis naira is valueless
ReplyDeleteHmnnn...there is trouble.
ReplyDeleteAnd why won't the naira be 217 to the dollar?
ReplyDeleteWhen the govt has no economic agenda or blue print for the country.
It is always Jonathan did this, Jonathan did that. And
We can't do anything bcos the past govt.
Aboki no go like am!
ReplyDeleteHahahahaha so true
DeleteNice one
ReplyDeleteStill not gud enof! The economy is in shambles. This is actually the best time to receive money from abroad!
ReplyDeleteGhanaman signing out!
It's only in nigeria,that exchange rate differs at parallel and inter bank.
ReplyDelete*scratches head* it's too early naa, rise.. fall.. rise
ReplyDeleteOne man's meat is another man's poison indeed, those that receive money through western union often, would even want it to rise to 300
This matter should be sorted out fast. Its something else
ReplyDeletenaijaflo.com
Hnmmm
ReplyDeleteJust when I'm expecting western u they want to kill my joy lol
ReplyDeletea.k.a EDWIN CHINEDU AZUBUKO said..
ReplyDelete.
Sorry for those people that spend in dollars though.....
.
.
***CURRENTLY IN JUPITER***
The dollars should come back to N140.00 then i will know this baba go slow administration is working.
ReplyDeleteAmen
Delete140 or even lower
NAAIJ I HAIL O....
ReplyDeleteThis is good, gradually this measure will strengthen the Naira.
ReplyDeleteMoney maker u r a big fool.. If u channel the energy u use against Buhari to some non performing governors of eastern states then Nigeria will be a better place. Is a northerner or a yoruba man d governor of Abia state? Instead of supporting the govt in saving d country of the mess past govt left us in you are here blabbing like a broken gong. And mind u I'm Onye Igbo.. ewu like u Bigot!!
ReplyDeleteNa wa o
ReplyDeletePapa Bubu should do something about it. Its becoming unbearable.
ReplyDeleteHalt business as a result of this....how long?
Hmmmm
ReplyDeleteBut some banks are frauds. Why is fidelity bank charging me N228 per dollar from foreign ATM withdrawal??? I feel cheated
ReplyDelete