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Naira fights back, gains N5 against U.S dollars

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After two days of pressure, the Naira appreciated against the United States Dollar at the segment of the parallel foreign exchange (FX) market on Thursday.

The naira appreciated to N520 to a dollar on Thursday after hitting a low of N525 to a dollar the previous day, according to data from Abokifx, a platform that collates prices.

The Naira had slumped when the Central Bank of Nigeria (CBN) shocked the market by cancelling forex sales to Bureaux De Change (BDC) operators, citing allegations of money laundering and other anti-market activities.

Street currency dealers reacted by hoarding their remaining dollars, creating artificial scarcity in the last two days and so devaluing the Nigerian currency.

However, the Naira to Pound Sterling exchange rate fell by N5 yesterday to N715/£1 from N710/£1 the previous day, although it finished unchanged against the Euro at N600/€1.

At the official market the Naira depreciated marginally against the U.S dollar.

Data obtained from FMDQ securities shows the Investors and Exporters Naira rate dropped by 7 kobo or 0.03 percent to N411.67/$1 from N411.60/$1 it close the previous day on Wednesday.

Read also: Naira drops in value again to U.S dollars

This happens as turnover fell by 83.5 percent, or $294.00 million, to $58.07 million from the midweek session’s $352.07 million.

At the end of trading on Thursday, the disparity between the official and unofficial market stands at N108.33.

Meanwhile, the Bankers Committee has assured Nigerians that the exchange rate will drop to around N423 to a dollar.

While this appears improbable, the Chief Executive Officer of Guarantee Holdco (GTCo), Segun Agbaje on Thursday was reported to have assured Journalists that the rate will come down.

“You will soon be able to buy at N423 or N425 at most,” Agbaje was quoted as saying.

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