Naira records slight gain against US dollar as expert makes positive prediction for 2023
The Nigerian Naira recorded a 25 Kobo or 0.05 percent gain on the US Dollar at the Investors and Exporters (I&E) window of the foreign exchange (FX) market on Wednesday.
Data from FMDQ Securities Exchange showed that the exchange rate of the Naira at the spot market was N461.25/$1 in the midweek session, in contrast to the N461.50/$1 it was exchanged on Tuesday.
One of the things that helped the local currency gain weight yesterday was the ease in forex demand pressure, as the value of FX transactions at the official market moderated marginally by 0.04 percent to $55.54 million from $55.52 million.
Similarly, the Naira appreciated against the greenback in the parallel market on Wednesday by N1 to settle at N744/$1 compared with the N745/$1 it was transacted a day earlier.
But it was a different outcome for the domestic currency at the Peer-to-Peer (P2P) segment of the FX market yesterday as it lost N4 against the American Dollar to trade at N760/$1 versus Tuesday’s N756/$1.
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As for the interbank window, the Nigerian currency further closed flat against the Pound Sterling and the Euro during the session at N554.07/£1 and N491.72/€1, respectively.
Meanwhile, Bismark Rewane, CEO of Financial Derivatives Co Ltd has predicted a positive change in Nigeria’s foreign exchange market.
According to him, the exchange rate adjustment will narrow the gap between the Investors and Exporters (I&E) segment of the FX market and the parallel market window from N747/$1 in 2022 to N680/$1 in 2023 due to a positive and bright outlook for the economy this year.
Rewane made the postulation in its Nigerian Economic Outlook 2023 document.
His words: “In 2023, exchange rate adjustment is inevitable, and when this happens and there are fewer administrative controls in the forex market, there will be more investment flows into the economy, which will help Naira defend against the dollar”