Naira has fallen again against the dollar, after picking up initially. This development is the exchange rate between the naira and dollar fell to around N1,745/$1 on the parallel market.
This development is a sharp reversal from the sub N1,600 levels which was recorded earlier. As of Wednesday morning, the rates pegged above the N1,700/$1.
This suggested that the gains seen last week may have been a “dead cat bounce” a market terminology for temporary gains. While some platforms were said to have reported that a dollar exchanges at N1,715, others sold for N1,745.
Stock trading apps like Bamboo and Trove quoted for N1,730/$1 and N1,736/$1 respectively. Meanwhile, the exchange rate between the naira and dollar in the official market closed at around N1,525/$1 on Tuesday the strongest close since the EFEM was introduced.
Despite the efforts by the Central Bank of Nigeria to manage exchange rates of the country, the official and black market rate for naira has now widened to about N200.
Quoting BDC operators, Nairametrics stated that BDCs suggest the weakening of Naira is likely the handiwork of speculators who are holding strong despite the introduction of a more robust trading platform by the CBN.
The CBN has continued to increase its monetary policy rate in a bid to curb inflation including ensuring stabilization of the naira.
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