Low dollar demand strengthens naira, exchanges N215/$1

The naira yesterday rode on the back of low demand for the dollar to gain N2 at the parallel market, trading N215/$1, rising by 1.38 per cent.

The naira also appreciated by N1 at the interbank market as it sold for N198/$1 against the N199.05/$1 it exchanged with the dollar on Thursday.

The President, Association of Bureau de Change (ABCON), Mr. Aminu Gwadabe told Hallmark that there has been very low patronage for the dollar has caused the nation’s currency to experience marginal appreciation.

He also stated that investors’ confidence that is returning to the country after President Muhammedu Buhari was declared the winner of the March 28, 2015 presidential election also helped in the strengthening of the naira.

Meanwhile, another dealer who does not want his name in print to Hallmark that he expects the naira to weaken from next week, because rumour is being peddled around that there would be further tacit devaluation of the naira has been milling around.

The Central Bank of Nigeria (CBN) had in November 2014 devalued the naira from N155/$1 to N168/$1, following the volatility of the nation’s currency.

 When this could not rescue the naira from further sliding, the apex bank had to shot the Retail Dutch Auction System (rDAS) and Window Dutch Auction System (wDAS) windows of the foreign exchange market on February 18, 2015, which brought about the unification of the market, has seen the naira hovering between N197/$1 and N199/$1.

The CBN had spent billions of dollars from the country’s foreign reserve defending the naira, which led to dipping of the reserve.

Nigeria’s foreign reserve presently stands at $29.6 billion as at May 28, 2015, a 20 per cent decline from $37.1 billion.