- Naira Gains on Liquidity Boost
The Nigerian Naira gained against the US dollar on Thursday after dollar scarcity forced it to trade lower on Wednesday.
The local currency improved N5 to close at N465 at the parallel market, from N470 it traded on Wednesday. While both the Pound Sterling and the Euro exchanged at N565 and N505 respectively.
At the interbank market, the Naira gained N1.78 from N306.78 it traded on Wednesday to close at N305 to a US dollar, while the Bureau De Change operators exchange at N385.
Experts have said the currency appreciated as Bureau De Change operators await the sale of dollars from Travelex, a CBN licenced international forex dealer.
“The Naira would appreciate further by the close of trading when BDCs would have all gotten their weekly Forex allocation from Travelex,” said Mr. Harrison Owoh, The Chief Executive Officer of H.J Trust.
The currency, which weakened on Wednesday following the dollar scarcity in the forex market, is expected to continue its recovery trajectory due to liquidity boost on the market.
Meanwhile, the Iraq has asked for an exemption from OPEC production cut similar to what Nigeria and Libya are likely to get, citing the on-going ISIS war in its country. This, among others, is the huddles likely to hinder the almost a decade success of OPEC institution.
A foreign exchange, research analyst at Investors King Ltd., Samed Olukoya said “Once OPEC members reach a consensus on production cut, the issue of liquidity should be addressed.”
Currently, the Brent crude is up 48 cents to trade at $50.47 a barrel.