• Saturday, May 18, 2024
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Naira regains strength as dollar demand moderates

Naira on Monday regained strength, gaining 0.30 percent of its value as demand for dollars moderated at the parallel market, also known as the black market.

At the close of trading on Monday, one dollar traded for N995 as against N998 traded during the morning session.

Some currency dealers said the naira appreciation followed a moderation in demand as the foreign exchange market awaits policy action from the new governor of the Central Bank of Nigeria.

At the Investors’ and Exporters’ (I&E) forex window, Nigeria’s official foreign exchange market, naira depreciated by 3.40 per cent as one dollar was quoted at N773.25 on Friday as against N738.00/$1 quoted on Thursday.

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Earlier on Monday, Nigeria’s currency lost 0.30 of its value against the dollar at the black market as the foreign exchange (FX) market resumed trading on Monday after the weekend.

The continued naira depreciation has been attributed to strong demand for the greenback. Also, fiscal policies, external trade, and global market trends, including inflation rates, interest rates, policy events, and geopolitical factors are key influencers affecting the Naira’s performance, according to Stears Africa FX Monitor, a data and intelligence company.

On Thursday Nigeria’s Central Bank postponed a rate-setting meeting, known as the Monetary Policy Committee (MPC) scheduled for Sept 25-26.

A statement from the apex bank on Friday noted that Olayemi Cardoso, new CBN governor who was recently nominated by President Bola Ahmed Tinubu, formally assumed duty, in an acting capacity, as the Governor of the CBN, pending his confirmation by the Senate.