This picture taken on January 29, 2016 in Lagos shows 1000 naira banknotes, Nigeria's currency. Nigeria's central bank governor, Godwin Emefiele, on January 26 dismissed calls to devalue the naira in his monetary policy committee statement. Instead he chose to continue propping up the currency at 197-199 naira to the dollar and maintain foreign-exchange restrictions. As a result, the naira on the black market is hovering around a record low of 305, fuelling complaints from domestic and foreign businesses who can't access dollars required for imports. / AFP / PIUS UTOMI EKPEI (Photo credit should read PIUS UTOMI EKPEI/AFP/Getty Images)
The naira has recovered in the foreign exchange market making gains against the U.S Dollar at both the parallel market (black market) and Investors and Exporters (1&E) window.
Brandnewsday reports that the local currency appreciated against the U.S dollar at the parallel market on Tuesday, 9 June 2020.
According to Abokifx, the naira appreciated to N448 to a dollar on Tuesday, June 9, 2020. This shows a gain of N2 when compared to the N450 to a dollar that was recorded on Monday.
Meanwhile, the local currency gain in the black market can be linked to a drop in forex demand, especially by speculators.
In a similar vein, the naira appreciated against the dollar at the Investors and Exporters (I&E) window. The naira traded at N387.08 to a dollar on Tuesday, June 9, 2020, as against the N387.33 that it was exchanged for yesterday. This represents a gain of N0.25. The opening indicative rate of N385.95 represents a gain of N1.51 to a dollar when compared to the opening rate of N387.46 that was recorded the previous day.
A further look at information from FMDQ shows that there is an increase in daily turnover to $31.81 million as against the $14.66 million which was recorded the previous day. This represents a 117% increase in market turnover.
The foreign exchange market has witnessed more stability with increased liquidity recently. This might be attributed to an increase in the price of oil which contributes about 90% to the country’s foreign exchange earnings and the $3.4 billion disbursements by IMF to the central bank of Nigeria.
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