New Telegraph

Naira Strengthens to N1,860/$1 On Parallel Market

Tony Chukwunyem The naira’s wild free fall on the parallel market in the last few days ended Thursday as the local currency recovered against the dollar to trade at N1,860 per dollar compared with N1,880/$1 on Wednesday, forex traders said. Analysts had predicted that surging demand for dollars amid increased scarcity of the greenback could lead to the naira crashing to N2,000 per dollar by the end of the week.

But industry told New Telegraph that raids by the Economic and Financial Crimes Commission (EFCC) and other security agencies on street traders of forex in some of the nation’s major cities in recent days may have contributed to the naira’s slight recovery against the dollar on Thursday. However, the naira fell to a record low of N1960 per Euro on the parallel market yesterday com – pared to N1,1885 per euro on Wednesday.

The local currency also fell against the Great British Pound (GBP) as it stood at N2260/£1 compared with N2,210/£1 on Wednesday. Similarly, the naira depreciated on the official market-the Investors and Exporters’ (I&E) window- on Thursday as it closed at N1,571.31 per dollar compared to N1,542.58/$1 recorded on the previous day.

The naira has been trading at above N1,400 per dollar on the official market in recent weeks following a revision of the methodology used to set the exchange rate by the market regulator FMDQ OTC Securities Exchange. In its bid to stem the naira’s decline, the CBN has been churning out circulars in recent weeks aimed at boosting forex liquidity.

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