In the foreign exchange market, the naira rises against the US dollar again
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Once again, Nigeria's currency Naira strengthened against the US dollar on the official foreign exchange market on Tuesday.
According to official FMDQ data, the naira rose to 806.73 naira to the dollar on Tuesday from 837.77 naira to the dollar on Tuesday.
This represents an increase of 31.04 Naira in local currency terms compared to Monday's closing price of 837.77 Naira per dollar.
The rise marks the second time this week that the country's currency has appreciated.
The move came as foreign exchange trading volume stood at $73.94 million as of Monday's close, representing a 32.87% increase from the previous day.
However, in the parallel market, the naira depreciated slightly, trading at 1170 Naira/$ on Tuesday, compared to 1165 Naira/$ the previous day.
Meanwhile, the Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, speaking just two weeks ago at the 50th Anniversary Ceremony of the Institute of Bankers of Nigeria (CIBN), said that sustained exchange rate fluctuations are driving business growth. He promised that the The bank shall be transparent and fair to all in carrying out its functions.
“We are confident and optimistic that with appropriate corrective and strategic measures, we can restore macroeconomic stability and address fundamental deficiencies,” he said.
The country’s currency has been volatile in the foreign exchange market since June 14, when the CBN floated the naira.
This comes after financial expert Professor Godwin Oyedokun blamed Nigeria's currency crisis on weak economic fundamentals, low foreign exchange reserves, rising external debt and the double exchange window. That's what it means.
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Source: dailypost.ng