Nigeria’s legal tender, the Naira strengthened marginally against the US Dollar on Thursday’s evening by N2, while it moved slightly in the opposite direction at the Investors and Exporters (I&E) window as it depreciated to N386.33 to a dollar.
Information from Abokifx shows that the naira appreciated to N453 to a dollar on Thursday, May 28, 2020 at the parallel market when compared to the N455 to a dollar that it exchanged at the end of Wednesday trading.
This could be attributed to lower demand for foreign exchange at the parallel market.
At the Investors and Exporters (I&E) window where it depreciated to N386.33 to a dollar, it shows a loss of N0.39 when compared to the N385.94 to a dollar that was recorded on Wednesday, May 27, 2020.
This is coming against the backdrop of a decline in the daily turnover to $22.65 million at the I&E window. This represents a drop of $8.73 million when compared to the $31.38 million that was recorded the previous day.
The performance of the naira in the 2 forex markets is coming on a day that the Central Bank of Nigeria against expectations reduced the Monetary Policy Rate (MPR) to 12.5% from 13.5%. This decision was taken after today’s monetary policy committee meeting and that is the lowest rate in the last 4 years.
In a bid to create more confidence in the forex market, the CBN Governor Godwin Emefiele had assured foreign investor of the safety of their investments despite a drop in foreign exchange earnings due to low oil prices.
However, the future outlook appears more positive following, the rebound of crude oil prices above the revised $25 per barrel benchmark and more foreign exchange earnings for the country.