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Sun, Jul

NSE Ends Week In High Hopes With Naira Gaining Against The Dollar

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Nigeria’s stock exchange (NSE) market which is currently valued at N20.13 trillion ended the day's trading session in high hopes with the All-Share Index making a 0.09% increase to close at 38,648.91 from 38,615.11. As the NSE ended the week on high, the exchange rate between the naira and the dollar at the parallel market strengthened, rising from N503/$1 to N485/$1.

The Naira made this rebound on Thursday after having been at its lowest points in about 4 years when it moved from N505/$1 to N497/$1. According to several sources, the rise in the value of naira is a result of the activities of the CBN who many are speculating, may be gearing up to pump forex into the retail end of the market as part of its efforts to boost liquidity. The bank which was recently blamed by the world bank for Nigeria's forex woes has been looking for ways to close the disparity between the official market and parallel market (black market) rates but it however prefers a rate that is stronger than the N485/$1 currently being traded.

In addition to the activities of the CBN, the prices of oil have remained above $70pB with the prediction that it could still rise past $80 and $100 as the world gradually returns to full capacity.

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