Foreign currency speculators and economic analysts, who unleashed an unprecedented attack against the Naira two weeks ago have gotten their fingers burnt severely on Wednesday, as the country’s currency staged a major recovery, rising to ₦300 to a dollar at the parallel market, compared to ₦375 at which it sold on Monday and ₦310 on Tuesday.
The local currency, which fell to an all-time low of about ₦400 against the greenback on the parallel market last week was predicted to plummet further to ₦450-₦500 per dollar by the end of this week.
However, the Naira defied expectations, climbing to as high as ₦305 to the dollar at some parallel market points in Lagos on Tuesday afternoon, before settling at ₦310.
While currency analysts attributed the significant gain on the parallel market to excess supply of the greenback in the market, forex dealers said the losses recorded by the local currency in recent weeks were “artificial and fuelled by the activities of currency speculators.”
Other forex dealers averred that the Naira might gain further and settle around ₦260 against the greenback at the parallel market.
“The dollar supply in the market is reducing; however, the naira may gain further significantly before reaching equilibrium,” a BDC operator in Agege, Lagos, Mr. Rotimi Lawal, said.
The local currency began its recovery after President Muhammadu Buhari had reiterated its stance not to devalue the Naira on Saturday.
Meanwhile, Institute of Chartered Accountants of Nigeria, ICAN, yesterday faulted individuals and groups calling for the devaluation of the nation’s currency, saying they were not sincere as devaluing the Naira would create more problems for the country.