Naira Slides Against the US Dollar on Thursday

nigerian currency
  • Naira Slides Against the US Dollar on Thursday

The value of the Nigerian Naira declined against the US dollar after President Trump proposed a $1 trillion stimulus package to support the American economy and people.

The Naira was exchanged between N372 and N374 to a US dollar at the Bureau De Change segment on Thursday, down from N366 it traded last week.

Weak oil prices and falling foreign reserves amid heighten global risk have weighed on the currency in recent weeks. However, the US dollar got a boost from the unusual stimulus package announced by Donald Trump to curb the impact of the virus on the economy and support affected families and businesses.

The US dollar rose against the Euro common currency to a three year high on Thursday due to the rise in the number of coronavirus victim in the Euro-area.

In Nigeria, an additional four cases reported on Thursday have increased the level of uncertainty despite the central bank announcing N1.1 trillion intervention stimulus.

The apex bank has managed to stabilise the Naira at around N360 to a single US dollar for the last three years before the coronavirus outbreak. Therefore, it is uncertain if the apex bank would be able to sustain the value of the Naira with current weak foreign reserves and low oil prices.

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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