Naira Sees Small Rebound After Record Drop As Senate Summons CBN Governor

Nigeria’s naira rose slightly against the US dollar in the official market on Wednesday, a day after the currency fell to a record low in the spot market. The currency strengthened to N430.00 per dollar on Wednesday from N431.00 which traded on the Nafex window in the previous session on Tuesday, data published in the FMQ website where forex is officially traded, revealed In the parallel market, the currency has weakened to N705 per dollar amid shortfalls in foreign exchange supply as demand rises. “We bought the naira today at N700.00 and sold it at N705.00 for $1,” said Shuaibu, a foreign exchange trader at the Uyo street market. Analysts have blamed the continued weakening of the naira on rising import bills, dollar savings and crypto hoarding by Nigerians who have lost confidence in the local unit due to its massive devaluation against the dollar. However, Iniobong Williams, a crypto trader and founder of Willywealth Trading, blamed the Central Bank of Nigeria’s foreign exchange policies for the recent drop. He said the announcement that Nigerians buying dollars with naira will be “arrested” by CBN Governor Godwin Emefiele a few days ago also further weakened the naira. “I think this has caused a tremendous panic among brokers who are trying to bridge the gap for those who need FX because CBN is unable to meet the high demand,” Williams said. In addition, he said that there is now also a high demand for foreign currency among students who want to pay their school fees and that most students resort to buying on the black market due to the long queue at the bank as a result of the limited availability of foreign exchange. . “Forex demand is high at the moment while supply is limited, hence the exchange rate increase,” he added. The Senate decided on Wednesday to invite Mr. Emefiele because of the naira’s free fall in recent weeks. Emefiele was asked to appear before the full Senate and address lawmakers behind closed doors. Lawmakers, however, did not set a date for the governor’s appearance. On Wednesday, lawmakers also decided to start a two-month recess that will end on September 20. Read More Related News Here Let here it in the comment below if you do have an opinion on this; Naira Sees Small Rebound After Record Drop As Senate Summons CBN Governor