Naira Improves against Pounds and Euro on Black Market

Nigerian currnency Naira on Monday, February 27, improved against Pounds and Euro while it remained unchanged American Dollar at the parallel market.

Recall that the on Friday, February 24, Naira had gained 40 points to trade at N460 per dollar rate from N500 a rate it has maintained.

The value of the Naira recorded the highest and fastest gain of 11.9 per cent in four days at the parallel market in over three years last week, as the Central Bank of Nigeria (CBN) sold a total of $372.4 million to ease the pressure on the local currency.

Naira which rose to an all time high of N522 to the dollar last week Monday had gained N62 by the weekend to sell at N460 to the greenback. The apex bank had sold $370.9 million dollars on Tuesday, February 21 and another $1.5 million on Thursday, February 23, sending the value of the Naira up.

According to financial experts, the local currency will continue to appreciate if the status quo is maintained.

“There is always a restriction point beyond which the exchange cannot cross except there is a huge forex inflow to breach that ceiling,” a currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, said.

“The Naira will gain further but it won’t be like last week’s own.”

Nigeria has been running short of dollars as its oil revenues have fallen along with the price of crude.

The local currency has plummeted in 30 years from 60 kobo=$1, when Nigeria could not be described amongst the world’s poorest, even when our $17billion reserves is the highest in 30 years.