The Naira slightly rebounded in its exchange rate for the US dollar on Wednesday at the parallel market to trade at an average of N740/$1, compared N741/$1 it traded on Tuesday.
Despite the local currency’s exchange rate appreciation, Bureaux De Change (BDC) operators still lamented the lingering lull in the FX market.
Also, the Naira improved in exchange value against the British Pound Sterling to trade at an average of N931/£1, indicating 0.21% appreciation when compared to N933/£1 it traded on Tuesday.
The market’s indices also reflected that the local currency traded flat with the Euro as it exchanged at an average of N805/€1 during the early hours of the trading on Wednesday, from N810/€1 it traded the previous day.
However, the data further showed that the Naira appreciated at the cryptocurrency P2P Exchange market to trade at an average of N742/$1, representing a 0.54% gain from N738/$1 it exchanged at during the previous trading session.
The Central Bank of Nigeria (CBN) had been supplying dollars to FX traders at the official window as part of its efforts to achieve a stable exchange rate for the Naira against other foreign currencies.
Though many financial experts believe that the apex bank’s interventions at the I&E window is affecting the foreign reserves’ accruals but the benefits of the CBN’s monetary policy action on the FX market cannot be over-emphasized in view of the job creation and other value addition parameters.
Analysts also attributed the not very strong foreign reserves position of the country to other factors, including the changing pattern of foreign trade, especially as it relates to the global supply chain in recent months, institutional changes in the economy and structural shifts in production, amongst others.
