The naira on Monday recorded marginal gains at the parallel markets and steadied at the official, the first business day after former Central Bank of Nigeria (CBN) Governor, Godwin Emefiele was suspended by President Bola Ahmed Tinubu.
The local currency recovered from N767/$1 it traded at the weekend, to close at N754/$1 at the parallel markets as more dealers express optimism in the policy direction of the new government.
The naira was also steady at the Investors and Exporters (I&E) Forex Window, trading at N463.38/$.
The I&E Forex window, also called the willing buyer/ wiling seller markets allows banks and foreign investors to buy and sell dollars at the rate of their choice provided they find buyers. It has in the last few years remained the most active channel of dollar transactions in the official market.
Speaking on market developments, President, Association of Bureaux De Change Operators of Nigeria (ABCON), Ahaji Aminu Gwadabe, said the positive sentiments in the market over leadership change at the CBN will continue to reflect positively on the domestic exchange rates.
He said: “The naira is appreciating against the Greenback in the black market. The naira have gained over N10/$ from a high level of N767/$ on Monday morning to a low of N754/$ at the close of business on Tuesday, at the parallel market. As positive sentiment continues to usher in confidence there is a likelihood of naira increasing its strength across markets”.
The British Pound buying rate as at yesterday was N940/£1 and selling rate was N955/£1, with analysts predicting sustained gains by the local currency against the Pounds in the weeks ahead.
Market analysts said Nigeria is in a difficult position and needs to increase its dollar earnings and other revenue to support the naira.
The World Bank said Nigeria should hike taxes, raise more revenue as the country’s current position is so bad, that it has never been witnessed in the last three decades.
The bank believes the oil production in Nigeria has not only fallen so badly in the last few years and oil prices is also not stable.
They also believe that Nigeria needs to build an economy that is net exporter of valuable goods and services to earn more dollars.
The priority should be given to manufacturing and exports to enhance speedy recovery of the local currency.