Naira fall to persist as forex demand picks up

• Published date: 11 January 2023
• Publication title: Nigeria - The Nation

The naira may likely resume its continued decline against the dollar in the coming days as post-holiday forex demand picks up again.

At the parallel market, the naira recovered from last week's record low, trading at N740/$1 from N746/$1 as the new year transactions picked up.

Forex Trader, AZA Finance, Ikenga Kalu, said: 'We expect the Naira to resume losses against the dollar in the coming days as post-holiday FX demand picks up again.'

The naira was yesterday exchanging at N434.78/$ at the Investors and Exporters Window (I and E) window, which is the official market, as exchange rate volatility continues at the parallel market.

Managing Director/CEO Financial Derivatives Company Limited, Bismarck Rewane, said exchange rate structure, restrictive policies, low sales and revenues, rationing of forex supply and capital flight are some of the key factors responsible for naira crash across various markets.

Analysts said the making of the Nigerian Autonomous Foreign Exchange Rate (NAFEX) also called the Investors' and Exporters' FX Window as the default official rate was a major step by the regulator to unify exchange rates.

CBN Governor, Godwin Emefiele said Nigeria, like other emerging market countries and countries reliant on oil exports, the decline in crude oil earnings as...