Naira gains for the second straight day on the black market


Nigeria’s naira firmed more than 2 percent on the parallel market on Thursday as individuals sold dollars after a peaceful presidential poll in Africa’s biggest economy won by opposition leader Muhammadu Buhari, black market dealers said.

 

Individuals, who had stockpiled dollars to hedge against devaluation and political risk were exchanging their funds for the local currency, dealers said, a sign of relief that the elections avoided the violence of previous polls.

The currency firmed to 210 naira on the parallel market, from 217 to the dollar on Wednesday. The interbank opened at 199.50 naira to the dollar, a range it has traded at since February, after the central bank pegged the rate, following a de facto devaluation.

Reuters

Nairametrics

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

What's your say?