After hitting an all-time zenith of over N1,900 to a dollar in the black market, the naira has maintained a bullish momentum against the dollar, appreciating by over N30 within the last 24 hours, and over N300 in recent weeks.
Political Economist NG reports that whereas the naira traded at N1,602 to the dollar on Monday, it has appreciated to N1,585 in the morning and later settled at N1,520 in the afternoon of today (Tuesday, March 19) in a major upward movement that has gladdened the hearts of importers.
Checks at BDCs at the popular NAHCO forex market in Lagos confirmed the bullish tendency of the naira.
With the new momentum of the naira, analysts predict that it might find its level at between N1,200 and N1,300 to the dollar within the next 30 days.
Political Economist NG Economic Intelligence Desk recalls that the naira depreciated last Friday to N1,670/$ from N1,600/$ recorded at the close of trading activity on Thursday at the parallel market. It however closed at an official rate of N1,537/$ on Friday from N1,498/$ recorded the previous day at the official market.
Analysts ascribe the continued appreciation of the naira to the strategic forex management measures introduced by Central Bank of Nigeria (CBN) which seem to reinforce investor confidence in the system.
One of such measures, Political Economist NG can authoritatively report was the increased dollar supply of about $3.83billion in eleven days of trading activities through the Nigerian Autonomous Foreign Exchange by Deposit Money Banks.
This, say, analysts mitigated the scarcity of dollar which afflicted the forex market from late last year to early this year.
They predict that as CBN tightens loose ends in the supply chain of forex, the naira will firm up in the coming weeks until it finds its befitting level said to be at a fair level of N1,300.
It is envisaged that once the naira finds its appropriate level, prices of goods and services will begin to adjust downward in response to the value of the naira.
