In April, the foreign exchange turnover of Naira against the US dollar in the Investors & Exporters market fell by 47.08 percent.
Monday’s daily turnover was $106.84m, with the exchange rate reaching an intraday trading high of N467 and a low of N460. Naira increased by 0.01% to settle at N461.31/dollar in the official market; however, the naira closed flat at N765/dollar in the parallel market.
In a research report, an analyst at Absa Group, a South African lender, predicted that the Naira will be depreciated by 15% in the following weeks. With Tinubu pushing for greater flexibility in the currency rate regime, we predict the naira to be adjusted upwards to 530/USD following the election.
The World Bank in April advised the Federal Government to unify the nation’s multiple exchange rate windows and carry out some other reforms to strengthen the economy and restore macroeconomic stability.