Naira gains 7%, now N211 to a dollar as there has been Low demand for Dollars after Election

Naira gains 7%, now N211 to a dollar as there has been Low demand for Dollars after Election

The Naira which sold for 228 against the dollar before the election, rose to 211 on Wednesday. The Acting President, Association of Bureau de Change Operators of Nigeria, Alhaji Aminu Gwadabe, said he expected the naira to rise further. He said,

“I think the trend will continue. The naira may appreciate from 211 to something below 197 currently at the interbank market.” Foreign exchange dealers also said the demand for dollar had reduced compared to what happened before the presidential election. In his reaction, a currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, said the market had been trading around the general elections and Buhari’s person. He said, “The market has been trading around sentiments and emotions, this is why the naira is appreciating; nothing has really changed in the fundamentals. 

There was high demand for the dollar before the election because some people predicted post-election violence. Now, the game is over and there is no violence. So, the demand for the greenback is abating.

“The market is also trading around the sentiment that Buhari will fight corruption, strengthen institutions and eliminate wastages. But after his inauguration, the market will trade around the fundamentals like the oil price, external reserves and others.” 

The naira-dollar exchange rate has, however, not witnessed any change at the interbank market. On Wednesday, the Naira closed at 197 to the dollar, a level it had traded at since February after the Central Bank of Nigeria, CBN, pegged the rate following a de facto devaluation.
Subscribe to Maryann Live by Email
To get our news on your finger tip, Click here to add us up on bbm Channel C004869CD. Do you have any story for us Email us at maryanneyo2@gmail.com Follow Us

	Maryann Blog
	maryann_blog
	maryann_live