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As naira strengthens against US dollar, hoarders are dumping the greenback

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The Naira on Friday appreciated against the dollar at the parallel market in Lagos.

This is coming against the backdrop of measures put in place by the Central Bank of Nigeria (CBN) to harmonize the various windows and stabilize the rate of the Nigerian currency.

This week, as BDCs await the resumption of sales of forex, the Naira appears to be staging a comeback as it strengthens against the US dollar.

NEW ECONOMY gathered from reliable sources in the parallel market in Lagos that dealers who have been hoarding the US dollar are dumping the greenback as fear of depreciation in value heightens.

On the other hand, buyers are waiting on the sideline with the hopes that things would improve further than they are for the Naira.

On Thursday, the Naira exchanged at N439 to a dollar at the parallel market in Lagos, while Pound Sterling and the Euro closed at N580 and N495 respectively.

Investors at the investor’s window traded the naira at N386.25 to a dollar as market turnover stood at 92.18 million dollars.

But at the official Central Bank of Nigeria (CBN) window, the naira was sold at 379 to a dollar.

Sources said the planned sale of foreign exchange to Bureau De Change Operators in Nigeria has sent panic to the camp of speculators, thus leading to the rebounding of the naira at the parallel market.

The CBN had last week said it would resume selling dollars to BDCs in a bid to meet demand for the greenback and ease pressure on the local currency.

 

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