How Nigeria’s Naira Fared Against US Dollar (Jan 24)

The Nigerian naira on Wednesday, January 24, stabilized at N360.25 per United States dollar in the Investors’ and Exporters’ (I&E) window. 

Data from the Financial Market Dealers Quote (FMDQ) showed that the indicative exchange rate for the window, known as Nigerian Autonomous Foreign Exchange, NAFEX, remained unchanged at N360.25 per dollar.

Meanwhile, the volume of dollars traded fell by 43 percent yesterday to $306.70 from $263.59 million on Tuesday.

The naira however appreciated by N1 to N364 per dollar in the parallel market.

This is just as the Central Bank of Nigeria (CBN) had on Monday injected $210 million into the foreign exchange market.

Confirming the development, the Acting Director, Corporate Communications Department (CCD), CBN, Mr. Isaac Okorafor said that the CBN offered $100million to authorized dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment got the sum of $55 million.

Meanwhile, there are strong indications that if rising reserves, oil prices in the international market and foreign exchange (forex) market liquidity are sustained, the Naira may be strengthened against other currencies from now till a greater part of 2018.

The development may spell doom for currency speculators and hoarders, including politicians who may have reserved some foreign currencies for 2019 electioneering campaigns.

The Naira’s positive outlook in the short term is riding on the back of resurging reserves’ profile, now nearing $41 billion and a stable crude oil prices at the international market, now hovering around $68 and $71 per barrel.