Naira increases at parallel market, trades at 910/$

By Sodiq Adelakun

Naira on Wednesday gained against dollar as demand in the parallel segment of the foreign exchange (FX) market drops further.

FX dealers were as at 3pm still buying the green back at N880 while selling at N910, according to data by AbokiFX, an online platform that tracks the exchange rate on the parallel market.

This new level of shows a remarkable gain when compared to the preceding day when dealers bought it at N932 and sold at N942.

The pressure on the naira in the parallel segment of the foreign exchange market has been cooling since this week following the Central Bank of Nigeria (CBN) announcement of plans to boost dollar supply in coming weeks.

“The CBN’s pronouncements may provide a boost for the Naira in the short term but what is more important are those necessary reforms in governance and transparency that will shore up investors interest enough to sustain long term confidence in the Naira,” said Eben Joels, Country Leader for Stransact, RSM correspondent firm for Nigeria.

Acting CBN Governor, Folashodun Shonubi had said that the government was ready to take action to save the naira, insisting that the record naira freefall was not caused by the market forces, rather by speculators.