Naira Takes Different Directions on Markets - LEADERSHIP
By BUKOLA IDOWU
The value of the naira remained stable at the Bureau De Change and parallel market as speculation on increased rates by the United States’ Federal Reserves put pressures on emerging market currencies. Although the currency remained stable on the streets and at the BDC market, its value declined at the official end of the market. At the Central Bank of Nigeria window, the value of the naira depreciated selling at N306 to the dollar as against N305.85 which it sold last week.
Also at the Nigeria Autonomous Foreign Exchange market the value of the naira sold at N362 to the dollar as against N361 which it was last week. It however gained strength slightly at the BDC market selling at N358 to the dollar compared to N358.5 which it was most of last week and at the beginning of this week, while it sold at N359 on the streets from N360 which had been selling. Commenting on the stability of the naira, analyst at FXTM, Lukman Otunuga noted that the naira continued to witness stability against a weaker dollar.
He stated that although the local currency could remain buoyed by repeated central bank intervention, external risks in the form of global trade tensions could create headwinds down the road. “With speculation of higher U.S interest rates also boosting the dollar and accelerating capital outflows from emerging markets, this is certainly bad news for emerging markets currencies which may depreciate further.”
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