Naira Dips As Dollar Gains Ground

The Naira suffered a decline against the Dollar on Wednesday, eroding the slight appreciation recorded by the legal tender against the United States currency in recent days.

Ekohotblog reports that the naira did not measure up well to the dollar at the Investors and Exporters (I&E) window on Wednesday as trading closed at N394.17k per dollar.

According to statistics from FMDQ Securities Exchange Plc., the development represents a 0.21 percent drop or 82 kobo loss when compared to the N393.35k per dollar that it exchanged for on Tuesday,

Meanwhile, Naira in the black market has enjoyed some measure of stability terms and terms in value to the dollars at N475/$ after two days trading.

However, analysts have cited increased demand for dollar by the end-users to meet their obligations for the the depreciation naira against the dollar in the official market.

Similarly, data from FMDQ Securities Exchange Plc shows that forex turnover rose to $89.50 million on Wednesday from $26.83 million recorded on Tuesday.

This suggests an increase in dollar inflow from Foreign Portfolio Investors (FPIs).

The chairman of the Presidential Economic Advisory Council on the market, Doyin Salami, wants Nigeria to develop a forex policy that allows the economy to grow.

For nearly a year, the foreign exchange market been badly hit by the plunge in oil prices occasioned by the COVID-19 pandemic.

The Central Bank of Nigeria had in the past weeks moved to clear the huge backlog of foreign exchange demand.

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