……depreciates against other foreign currencies
Nigeria’s currency, the Naira, reversed its exchange rate loss against the US dollar at the black market on Wednesday, to trade at an average of N758/$1. which indicated 2.82% gain when compared to the N780/$1 it traded in the previous day’s trading session.
Some Bureau De Change (BDC) operators at the Federal Capital Territory (FCT) linked the local currency’s exchange rate gain to improved business climate in the country and growing confidence of investors about the economy’s positive prospects.
However, the local currency depreciated in value against the British Pound Sterling, to trade at an average exchange rate of N970/£1 and reflected a 1.78% drop in value compared to the N953/£1 exchange rate it recorded on Tuesday.
Similarly, the Naira recorded a loss of 0.61% against the Euro, trading at an average exchange rate of N820/€1 during Wednesday’s trading session compared to the N815/€1 it exchanged at the previous day
According to data sourced from a P2P exchange platform, the local currency, however, significantly appreciated at the cryptocurrency Peer-to-Peer (P-2-P) Exchange market and traded at a minimum of N766.75/$1. This represents a 4.16% increase from the last trading session when it recorded N800/$1.
Despite its losses against other foreign currencies in the past few weeks, analysts have believe that the local currency will strengthen in value its exchange rate against other currencies in the next few months following the latest FX guidelines of the Central Bank of Nigeria (CBN).
The apex bank had last week authorized deposit money banks (DMBs) and FX dealers to trade based on market-determined rates at the FX markets gain traction.
The analysts projected that the FX policy would be complemented by other fiscal measures of the new administration aimed at improving the business environment for investments.
