The Nigeria currency, Naira on Tuesday firmed on the parallel market against the U.S. dollar for the second day in a row after President Muhammadu Buhari’s defiant stance on devaluation of the currency which has been hit hard by a fall in oil prices.
The Naira firmed 3 percent to ₦364 naira from Monday’s quote of ₦375 against the greenback on the unofficial market.
However, the Central Bank of Nigeria (CBN) official interbank rate remained at 199.50 to the dollar at the close of trading on Monday.
“Many people are now aligning with the government’s position of no devaluation,” one dealer said.
“The naira may moderate slightly this week at the parallel market given the recent statement of the CBN on school fees and medical bills. However, the spread will continue to incentivize round-tripping and speculations,” the Head, Investment Research, Afrinvest West Africa, Mr. Ebo Ayodeji, said yesterday.
Economic analysts are divided as to whether the CBN needs to devalue the Naira or not.
If you recall, on Saturday, President Buhari had rejected the idea of devaluing the currency.