Market News
Naira falls to N1,420/$ at parallel market amid dollar scarcity - THE NATION
BY Collins Nweze | Assistant Business Editor
The naira yesterday recorded significant fall against the dollar and other global currencies at both official and parallel markets.
The local currency which opened at N1,300 to dollar on Wednesday closed at N1,420 to dollar at the parallel market.
The N120 depreciation was attributed to drop in dollar liquidity and speculative activities in the market.
At the official market, the naira traded at N1,309, representing 0.10 per cent depreciation from Wednesday’s closing rate.
Managing Director, Financial Derivatives Company (FDC) Limited, Bismarck Rewane said the naira had since February, appreciated significantly across the markets, fueled by sanitisation of the forex market, an increase in forex supply and a fall in the demand for dollars.
The settlement of the $7 billion verified forex backlog of forward commitments have boosted confidence and improved the credibility of the Central Bank of Nigeria (CBN).
“However, the pressing question remains, will the naira tumble again? The answer is No, if Nigeria continues to do the right things. Prospects for forex earnings are promising, with foreign portfolio investments on the rise. Nigeria’s key export commodities have also seen significant price surges, with cocoa trading at a record high of over $10,000 per tonne in the global market and oil prices exceeding $85pb as oil production reached an impressive 1.48mbpd in February 2024,” Rewane stated.
