Naira Gains on Low Market Activity

DollarPhotographer: Susana Gonzalez/Bloomberg
  • Naira Gains on Low Market Activity

The Naira appreciated against the U.S. dollar on Monday, after about two weeks of losses.

The local currency gained N3 from N493 to exchange at N490 at the parallel market, while both the Pound Sterling and the Euro traded at N600 and N506 respectively.

But at the Bureau De Change segment, the Naira closed at CBN stipulated rate of N399 to a dollar, while the Pound Sterling and the Euro traded N599 and N510 respectively.

At the interbank market, the Naira was stable at N305, same rate it traded on Friday.

Currency traders have attributed the gains to low activities at the market, as businesses are yet to hit full production.

The Naira remained around N490 a dollar inspite of speculations that it would hit N500.

However, a research analyst at Investors King Ltd, Samed Olukoya, said N500 is not far-fetch, but optimistic that the Naira will appreciate by the second half of the year if the federal government can curb the activities of the militants.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya

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