The Naira is likely to rebound from its loss this week, as the Central Bank of Nigeria (CBN) is expected to inject funds into the exchange market to prevent additional losses.
Nigerian currency fell against the U.S. dollar at the official market on Friday after it gained slightly the previous day.
The value of the local currency depreciated to N411.25/$1 in contrast to N410.70/$1 it traded on Thursday.
According to data from FMDQ Securities Exchange, the demand for forex increased by 128.2 percent or $78.23 million as transactions worth $139.23 million were executed compared with the $61.0 million achieved at the preceding session.
The inability of forex traders to meet the demands of their customers contributed to the decline the Nigerian currency suffered at the trading session.
However, this is likely to lessen this week as the CBN is scheduled to sell dollars to Bureau De Change Operators, and market experts anticipate an uptick in CBN activity in the investors and exporters window.
At the parallel market, it is difficult to tell how activities will play out this week as speculators watch to pounce on any pressure in the I&E window.
The Naira traded flat versus the US dollar, the pound sterling, and the euro on Friday last week in the unregulated market, according to Abokifx data.
The Nigerian naira finished the week at N503/$1 same rate it traded in the previous day.
It also traded at N710/£1 against the British pound, unchanged from the previous day, while the Euro finished the day at N595/€1, and again unchanged from the previous day.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
If you are motivated and passionate about building a global society, founded on justice, equity, fairness, transparency, accountability and superior knowledge, kindly consider donating to Ripples Nigeria’s solutions journalism.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: Inside UNILAG’s multi-million naira budgetary abuse and academic discord
The University of Lagos located in Nigeria’s commercial capital, Lagos, has been embroiled in controversies with allegations bothering on misappropriation of...
SPECIAL REPORT: Displaced residents of Zamfara battle hunger, as underfunding derails Nigeria’s nutrition goals
On paper, Muhammad Zayyanu is seven years old. The quiet boy who looks shorter for his age could not recollect...
INVESTIGATION: N7.3bn paid for unnamed projects; how Nigerian govt spent N2.2trn in six months
Analysing nearly 3,000 payments made by various Federal Government Ministries, Departments and Agencies (MDAs) over the previous six months (January...
INVESTIGATION… Delay rocks Nigerian govt’s promise of N30,000 covid-19 relief for artisans, others
Before the outbreak of the COVID-19 pandemic in February, 2020, Chukwudi Okoroigwe’s daily earnings as a bus driver was hardly enough to cater to the...
INVESTIGATION… Ten years after, communities count losses as AfDB, Cross River govt abandon road project
Ten years after the Cross River State government and African Development Bank (AFDB) jointly awarded the Yahe-Wanokom-Wanikade-Benue border road for...