Naira Strengthens Further To 310 Per Dollar

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Naira Strengthens Further To 310 Per Dollar

The Nigerian Naira on Tuesday staged a major recovery, strengthening to N310 to a dollar at the close of business, compared to N375 at which it sold on Monday.

The naira had fallen to an all-time low of about N400 to a dollar on the parallel market last week fuelling concerns that it would plummet further to N450-N500/$ this week.

The Naira according to THISDAY defied expectations, climbing to as high as N305 to the dollar at some parallel market points in Lagos on Tuesday afternoon, before settling at N310.

Forex dealers and currency analysts attributed the significant gain on the parallel market to excess supply of the greenback in the market, even as it looked like a lot of speculators lost the shirts on their back.

It’s reported that speculators thought that by attacking the currency last week, coupled with misplaced concerns that the Central Bank of Nigeria (CBN) was going to stop the allocation of forex for school fees and medical bills abroad, this would compel the central bank and President Muhammadu Buhari to alter their stance against the devaluation of the currency.