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Naira appreciates against dollar at parallel market

FOREX: CBN injects N273m into retail secondary market

Naira made a rally against the U.S. dollar at the parallel market segment of the foreign exchange (forex) market on Tuesday.

Market data obtained from exchange rates platform, abokiFX, revealed that Naira appreciated to N448 to a dollar yesterday, improving by N2 relative to the N450 to a dollar it exchanged for on Monday.

The gain is attributable to a fall in forex demand by currency speculators.

Meanwhile, at the Investors and Exporters (I&E) window on Tuesday, Naira strengthened against the U.S. dollar. Naira traded at N387.08 to a dollar, gaining N0.25 compared to the N387.33 rate of exchange at the session before.

Read also: CBN shuts out importers of goods with local substitutes from accessing forex

The opening indicative rate of N385.95 to a dollar translated to a gain of N1.51 relative to the opening indicative rate of N387.46 that was posted on Monday.

There was a 117 per cent rise in the daily turnover to $31.81 million from the $14.66 million reported at the Monday session.

The forex market has seen greater stability with improved liquidity in recent times. This has been largely influenced by a surge in the price of oil, which accounts for 90 per cent of Nigeria’s forex earnings, as well as the $3.4 billion disbursement by the International Monetary Fund to the Central Bank of Nigeria.

Ronald Adamolekun

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Ronald Adamolekun

Ronald Adamolekun is a creative writer with a mixed bag of experience in fields as diverse as data journalism, financial reporting and editing.

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