The naira was trading at N545 to the dollar on the parallel market at the weekend, maintaining its strongest level since early September 2021. The local currency exchanges at N411.59 to the dollar at the official market.
The naira stability was triggered by drop in dollar demand by importers and other forex users who are going for substitutes for importee products and raw materials.
The Nigeria’s foreign exchange reserves declined to $41.5 billion this week, a drop of around $100 million, according to the Central Bank’s 30-day moving average benchmark.
Trading Desk Manager, AZA, global forex dealer, Murega Mungai, said inflation also fell for a seventh consecutive month, with prices rising by 15.99 per cent in October compared to 16.63 per cent a month earlier, driven lower by falling food costs.
“With weaker dollar demand unlikely to change, we expect the Naira to remain around the N540 to dollar handle in the coming week (this week),” he said.
Responding to the naira position, the International Monetary Fund(IMF), welcomed steps taken toward unification of the exchange rate and stressed the need for further actions