Tuesday, 23 February 2016

Nigeria naira firms on parallel market after president rejects devaluation

 Nigeria's naira firmed sharply to 375 on the parallel market on Monday after importers started to reduce demand for dollars following the president's defiance over devaluing the currency, hit hard by the fall in global oil prices,
one trader said.

The naira firmed 4 percent from Friday's close of 390 to the dollar, while the official interbank rate remained at 199.50 to the dollar at the close of trading on Monday.
Aminu Gwadabe, the head of Nigeria's bureau de change association, said that retail currency operators were working to introduce a single quote across the parallel market and maintain a bid-ask spread of 3.5 percent fortrades.

President Muhammadu Buhari on Saturday again rejected the idea of devaluing the West African nation's currency, despite a hammering of the naira on the secondary market last week.

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