Naira Strengthens Vs The Dollar And Trades At N1115/$ On The P2p Market

Currency traders reassess their approaches, the naira strengthened by N166 against the dollar...

According to reports, as currency traders reassess their approaches, the naira strengthened by N166 against the dollar in the P2P market in just a few hours

The naira settled at N1113/$ as of this writing, having peaked at N1279/$ on Thursday evening.

Feelers in the markets indicate that the gains might be the result of a dearth of buyers because so few are willing to pay N1300/$, indicating that the local currency may increase in the future.

The country is expected to receive $10 billion in foreign currency inflows over the next several weeks, according to Finance Minister Wale Edun. These inflows are intended to enhance market liquidity, which has been impeding the expansion of the largest economy in Africa.

The finance minister went on to say that President Tinubu issued two executive orders allowing the transfer of all cash held outside the banking system into banks and the issuing of domestic financial instruments denominated in foreign currencies.

Traders, and speculators in particular, seem to believe that the dollar may appreciate versus other currencies in the near future, thus in order to save their jobs, they must sell Tower.

President Tinubu had just given summit attendees his word that he would clear the backlog and that he had taken steps to address liquidity in the foreign currency market when he made his statements.

He claims that every transaction in the foreign exchange market would be strictly monitored, and those who violate the rules will be exposed and dealt with. This includes transactions made by officials as well as money changers, where significant sums of arbitrage have frequently occurred.

He agreed that the lack of liquidity is the main cause of Nigeria's foreign exchange market's inefficiency, but the government is prepared to take all necessary measures to improve the status quo.

All lawful and proper transactions will be covered by the government and take place in the official foreign exchange market after the foreign exchange market is streamlined and reorganized. According to Edun, anything more will be penalized, regarded as a criminal offense, and prohibited.