Naira within hours has appreciated by N166 to the dollar in the parallel market, as currency traders re-evaluate their strategies.
Gatekeepers News reports that the naira which peaked at N1279/$ on Thursday evening, settled at N1113/$ as of the time of filing this report.
According to reports from the markets, the gains may be due to a lack of buyers as many declined to pay around N1300/$ sensing a potential strengthening of the local currency.
Meanwhile, Gatekeepers News reports that Finance Minister Wale Edun said the country was set to receive $10 billion in foreign currency inflows over the next several weeks to help improve liquidity in the foreign exchange market, which has stifled growth in Africa’s largest economy.
In addition, Edun said President Bola Tinubu signed two executive orders permitting the issuance of domestic financial instruments denominated in foreign currencies as well as the transfer of all cash outside the banking system into banks.
This created an impression among traders especially speculators that the exchange rate could gain against the dollar in the coming days.
The Minister’s remarks were made just after President Tinubu had assured summit attendees that he would clear the backlog and that he had taken action to address liquidity in the foreign exchange market.
He added that every transaction in the foreign exchange market, from the official to the money changers, where large amounts of arbitrage have regularly happened, will be closely watched, and those who transgress will be found out and dealt with.
