Naira ends two-day rally, falls to N1,185/S1

The recent two-day rally recorded by the Naira came to an end yesterday as the Nigerian currency shed N35 to fall to N1,185/$1 at the parallel market.

The Naira had plummeted to N1,230/$1 on Friday from the N1,315/$1 it traded on Thursday before further declining to N1,150 /$1.

That trend was, however, reversed on Tuesday as the Nigerian currency shed N35 to close at N1,185 against the US greenback.

It was a different scenario at the official window as the naira appreciated against the dollar on Tuesday, 31 October 2023 to close at N815.32/$1.

This represents a 21.81% increase from the N993.82/$1 recorded on the previous day.

READ ALSO:Naira slumps again after recent marginal gains against the dollar

The intraday high recorded as of the 30th of October was N998.00/$1, while the intraday low was N6475.00/$1, representing a wide spread of N523/$1.

According to data obtained from the official NAFEM window, forex turnover as of the 30th of October was $881.31 million, representing a 66.01% decrease compared to the previous day.

Earlier, the federal government had announced that it is planning to introduce new rules to the FOREX market which is geared towards boosting the value of the naira and stifling the activities of illegal currency trading.

The new rule will include expanding the official market to accept all legitimate transactions and ensuring the “illicit” black market does not get supply.

All these measures are expected to result in the naira closing its more-than-45% gap with the unofficial rate and reaching a “fair price” by year-end.

By Babajide Okeowo

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