candidate General Muhammadu Buhari in
presidential poll, the naira commenced to
stabilize.
It appreciated by 7% to 211 against the United States
dollar at the parallel market.
Nigeria's currency, which sold for 228 against the
dollar before the poll, rose to 211 on Wednesday,
Bureau de Change operators said.
Alhaji Aminu Gwadabe, the acting president of the
Association of Bureau de Change Operators of
Nigeria, said he expected the naira to rise further.
He said: "I think the trend will continue. The naira
may appreciate from 211 to something below 197
currently at the interbank market ."
Foreign exchange traders said the demand for
dollars had subsided compared to what happened
before the presidential poll.
Kunle Ezun, a currency analyst at Ecobank Nigeria,
stated that the market had been trading around the
general elections and Buhari's person.
He said: "The market has been trading around
sentiments and emotions, this is why the naira is
appreciating; nothing has really changed in the
fundamentals. There was high demand for the dollar
before the election because some people predicted
post-election violence. Now, the game is over and
there is no violence. So, the demand for the
greenback is abating.
"The market is also trading around the sentiment that
Buhari will fight corruption, strengthen institutions
and eliminate wastages. But after his inauguration,
the market will trade around the fundamentals like
the oil price, external reserves and others ."
The naira-dollar exchange rate has yet to witness any
change on the interbank market.
On Wednesday, the local currency closed at 197 to
the dollar, a level it had traded at since February after
the Central Bank of Nigeria pegged the rate following
a de facto devaluation.
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