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Naira rises to 375 Naira to Dollar in parallel market

(Last Updated On: May 19, 2017)

 

By James, Michael Igiri

The naira yesterday rose to N375 per dollar in the parallel market in response to

increased dollar supply and decline in demand

Analysis reveals that the parallel market exchange rate which had been stable at N385

per dollar since last week yesterday dropped to N375 per dollar, due to inflow from CBN

dollar sale to bureaux de change.

Investigations also reveal decline in demand for dollars resulting into lull in market

activities.

Nigeria’s apex bank, the CNN, has in the past weeks made efforts- monetary and

regulatory- to revive the ailing economy, the result of which is a steady fall of the dollar

to the naira in terms of exchange rates.

It would be recalled that the federal government had assured that the country would be

out of recession by the end of June, following a revelation made by the governor of

Central Bank Mr Godwin Emefiele, and is therefore making concerted effort to meet the

June deadline.

Addressing journalists during a media parley last month, Emefiele had said:

“Actually, the Senate President invited us to come and brief the Senate in a closed

session and the leadership about providing some updates about the foreign

exchange market and you will all have observed that in the last two months, the CBN

has been involved in some form of intensive interventions in the foreign exchange

market.

“This has fortunately resulted in a downward trend in the parallel market price of

foreign exchange from as high as N525 to as low as N370. Right now, it hovers

between N370 and N380.

There as been an indication of some form of recovery although it is not clear, yet, just

how much of this recovery is being felt by consumers as prices of goods and services

have remained relatively high.

A more holistic assessment would however be made at the end of the June timeline

given by government.