Naira Stabilises Against US Dollar At Parallel Market

The naira , on Tuesday, stabilized against the United States dollar in the parallel market as it traded for N1,295/$1.

The naira, it was gathered, closed at N1,295/$1, on Monday, and still stably maintained its value, on Tuesday.

According to Aboki FX, while the dollar traded for N1,295/$1, the Great Britain Pound (GBP), also maintained its stability at N1,610/ £1 in the last 24 hours.

The stability comes few days after the Minister of Budget and Economic Planning, Atiku Bagudu, said he expects the exchange rate to improve following the ongoing reforms of President Bola Tinubu and the Central Bank of Nigeria (CBN).

According to him, countries which have liberalised their foreign exchange market like Nigeria have enjoyed better exchange rates, expressing confidence Nigeria foreign exchange market will perform better.

He said global indices had shown that things would improve, advising local and foreign investors to take steps in this direction.
His comments came about six months after Tinubu removed rate cap on the exchange rate, among other currency reforms.

He said, “Mr. President has signed two Executive Orders. We have been deceiving ourselves; we have run a system where we don’t have dollars, or we don’t have foreign exchange anymore. So even if you desire to enjoy repatration, you don’t have, because you have boxed yourself into a corner. It has to be a willing-buyer, willing-seller market.

“There are things you can’t control. If somebody makes legislation and says that every bag of yams will cost N100, the people who hold the yams will just take them quickly back to the store and lock them. So the steps taken by Mr. President and the central bank may be inconvenient now in terms of the fluctuation, but we believe it will stabilise and get better. Countries that have chosen that route have done better on average in the long-run.”