Analysts and foreign exchange dealers have predicted that the naira will rise further against the dollar on the parallel market this week.
They say that the peaceful outcome of the presidential election and the hard stance of the president-elect, Muhammadu Buhari, against corruption and economic leakages has boosted investor confidence in the economy.
On Friday the naira rose to 210, while the local currency traded within the 199-199.50 band on the official interbank market, where it has been stuck since February, after the Central Bank of Nigeria pegged the rate.
Alhaji Aminu Gwadabe, the acting president of theAssociation of Bureau de Change Operators of Nigeria, stated that he expected the local currency to rise further this week and beyond.
He said the naira had firmed to 204 against the dollar on Thursday, adding that he believed the trend would continue this week.
According to his predictions, the naira may appreciate to something below 197 currently at the interbank market.
A currency analyst at Ecobank Nigeria, Kunle Ezun, said the market was trading around the general elections and Buhari’s person.
He had said: “The market has been trading around sentiments and emotions, this is why the naira is appreciating; nothing has really changed in the fundamentals. There was high demand for the dollar before the election because some people predicted post-election violence. Now, the game is over and there is no violence. So, the demand for the greenback is abating.The market is also trading around the sentiment that Buhari will fight corruption, strengthen institutions and eliminate wastages. But after his inauguration, the market will trade around the fundamentals like the oil price, external reserves and others
No comments:
Post a Comment