The naira was traded at N545 to the dollar at the parallel market over the weekend, sustaining its strongest level since early September 2021. Also, it traded at N411.59 to the dollar at the official Investors and Exporters window.
The naira’s firmness was caused by a decline in the demand for dollar by importers and other forex users who settled for substitutes of imported products and raw materials.
Nigeria’s foreign exchange reserves slumped to $41.5 billion this week, marking a nearly $100 million decline, according to the Central Bank’s 30-day moving average benchmark.
Trading Desk Manager, AZA, global forex dealer, Murega Mungai, said inflation also fell for a seventh consecutive month, with prices rising by 15.99 per cent in October compared to 16.63 per cent a month earlier, driven lower by falling food costs.
“With weaker dollar demand unlikely to change, we expect the Naira to remain around the N540 to dollar handle in the coming week (this week),” he said.
Responding to the naira position, the International Monetary Fund(IMF), welcomed steps taken toward unification of the exchange rate and stressed the need for further actions.