Naira Strengthens Against US Dollar at Parallel Market

The Nigerian Naira strengthened against the US dollar as speculators are skeptical of CBN possible policies in 2016.

The naira gained N1, around 0.4 percent at the parallel market to N226 a dollar, compared with its previous value of N227. Last week, naira was exchanged at 280 to the US dollar before CBN sold $20 million to Bureau de change to ease the situation.

Since the apex bank institute various forex restrictions to curb dollar usage in order to increase the nation foreign reserve and contain the effect of falling oil prices on the economy, several speculators have becomes wary of the unpredictable nature of the Central Bank when it comes to forex policies. Hence, they seems cautious of hoarding the greenback.

Some of the traders at the parallel market told NAN that naira gained because speculators are uncertain of CBN 2016 forex policy. Therefore, they prefer to exchange at current market price.

Finally, it seems the rigid policy of CBN is working, hopefully it will remain so. Naira remains N197 to the US dollar at the inter-bank market.