How The Naira Fared Against Dollar On Parallel Market (Aug 2)

The naira gained marginally against the United States dollar at the parallel market on Wednesday, August 2, 2017.

The local currency appreciated by 50k to exchange at N362.50, stronger than N363 posted on Tuesday, while the Pound Sterling and the Euro traded at N473 and N422 respectively.

At the Bureau De Change (BDC) window, the Naira was sold at N363, while the Pound Sterling and the Euro traded at N472 and N423 respectively.

The Naira, however, depreciated at the investors’ window, selling at N368.50 from 367.28 to the dollar.

Traders at the market said that uncertainty on the exchange rate permeated trading as buyers exercised great caution.

Since the implementation of the flexible exchange rate policy, the forces of demand and supply had been the sole determinant of the exchange rate.

Though, the Central Bank of Nigeria (CBN) had since discontinued its peg on the exchange rate, it had remained resolute in its interventions and ensuring a robust and stable exchange rate policy.

The stability and availability of foreign exchange had impacted positively on the expansion of the manufacturing sector as reflected in the Purchasing Managers Index (PMI) for July.

According to data from the apex bank, the PMI stood at 54.1 per cent in July 2017, indicating expansion in the manufacturing sector for the fourth consecutive month.