Naira firms at autonomous market as market regains confidence

The naira on Tuesday gained against the dollar at the autonomous market and Bureau de Change (BDC) segment of the foreign exchange market as the market regains confidence following the expectations from the up-coming ministerial positions.

Naira gained N1 or 0.44 percent against the dollar on Tuesday at the BDC segment and parallel market, respectively.

After trading on Tuesday, the local currency closed at N224/$ compared with N225/$ on Monday at the BDC segment. It closed at N225/$ as against N226/$ the previous day at the parallel market.

However, at the interbank foreign exchange, the naira weakened by N0.79k/$ or 0.40 percent to close at N198.54/$ on Tuesday from N197.75k/$ the previous day.

Meanwhile, the clearing rate of the Central Bank of Nigeria (CBN) remained stable at the interbank market, closing at N196.98/$.

The CBN on Monday adjusted its clearing rate at the interbank, which helped the naira gained slightly by N0.61k or 0.31 percent against the dollar at the interbank market foreign exchange.

Aminu Gwadabe, acting national president, Association of Bureau De Change Operators of Nigeria (ABCON), told BusinessDay that the policy stance of the CBN was becoming more effective as the naira stabilised at the BDC segment and parallel market last week.

He also said that confidence had returned to the market following ministerial lists released by the Federal Government, saying the downward review of the Cash Reserve Requirement (CRR) from 31 percent to 25 percent by the CBN had contributed to the foreign exchange stability.