Naira opened trading for the year at the Investors and Exporters’ (I & E) window on an upswing yesterday. It was quoted at N422.67 per dollar, gaining N8.75, as against last year’s closing rate of N435/$.
The Guardian reported earlier that the local currency fell to a record low at the spot market on the last trading day of 2021, closing at $435/$.
The quote was the lowest naira had plugged at the official market. With the closure quote, the naira traded at a discount of over 15 per cent against the dollar at the official Nigerian Autonomous Foreign Exchange (NAFEX) year-on-year.
Experts described the dip as an indication that the currency crisis, triggered by rising imports and speculative trading, was not over, urging Nigerians to brace for more volatility this year.
Yesterday, the greenback started trading at N426.25/$ at the official window and closed at N422.67/$. At the parallel market, the naira continues to trade sideways against the dollar amid tight liquidity.
At popular Lagos street markets, the naira held strong around N565/$ but operators suggest the exchange rate could break down soon as activities resume fully for the year and Nigerians in the diaspora who came home for yuletide begin to travel back.
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