Emmanuel OchayiOn a day marked by a marginal gain for the Naira against the dollar, the local currency appreciated to close at N901.41 to a dollar at the official market, while holding steady at N1,260/$1 at the black market on Thursday, December 14th, 2023.
Financial data from the NAFEM revealed a 0.36% increase, showcasing an upward trend compared to the previous day’s closure at N904.65.
The fluctuation in rates saw a notable intraday high of N1,185.10/$1 and a low of N475/$1, signifying a considerable N710.10/$1 spread.
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Forex turnover by the close of trading amounted to $147.20 million, a noteworthy 21.76% rise from the preceding day.
Addressing the ongoing foreign exchange concerns, the Central Bank of Nigeria (CBN) disclosed its tranche payments to 31 banks to clear foreign exchange forward obligations.
Additionally, the apex bank revealed the implementation of foreign exchange frameworks as measures to tackle the persisting FX issues.
Financial experts weighed in on the current currency situation. Olatunde Amolegbe, former President of the Chartered Institute of Stockbrokers and Managing Director of Arthur Steven Asset Management Limited, emphasized the role of market and participant confidence in stabilizing the exchange rate.
He underscored the necessity for structural changes to foster stability, including improved security, infrastructure, increased foreign investments, and local production encouragement.
Meanwhile, Bismarck Rewane, Managing Director/CEO of Financial Derivatives Company Limited, highlighted the expectation of continued volatility in the naira due to concerns over forex supply.
The scarcity of dollars has led to speculative trading, with more participants favoring long positions on the dollar while shorting the naira.
As the financial landscape navigates these challenges, experts stress the need to bolster confidence and implement broader structural reforms to sustain stability in Nigeria’s currency exchange market.
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