The Naira on Tuesday, November 8, recorded gain against the dollar as it now trades at N470/$1 in the black market.
According to economists, the gain recorded by the nation’s currency on the unofficial segment of the market can be attributed to improved dollar liquidity to the Bureau De Change (BDC) arm of the market.
This has helped sustained the growth of the local currency as economic and financial experts believe the local currency may not fall below 475 against the United States dollar between now and end of December, even if it suffers another crash.
“It appears the exchange rate has got to the peak, which is something around 470/dollar. I think the naira may not go beyond 475/dollar between now and end of December,” a currency strategist at Ecobank Nigeria, Mr. Kunle Ezun said.
He added that holidaymakers returning to Nigeria for Christmas would also make dollar supply to increase.
And according to Alhaji Aminu Gwadabe, president of Association of Bureau De Change Operators, efforts being made by the CBN to boost supply would make the Naira to appreciate in coming months.
Gwadabe said: “The CBN Governor, Mr. Godwin Emefiele, met with the International Money Transfer Organisations in London on Saturday. The government is trying to woo these operators to enable them to bring more forex into the country. This will boost supply. Already, the exchange rate which the IMTOs can sell dollars to the banks has been increased from 336 to 375.”
“At the association level, we have created committees that will check sharp practices in the market. All these will yield result.”