Gradual Easing of lockdown’ll increase dollar demand -Afrinvest

The kick-starting of economic activities across the country following  the gradual easing of the lockdown will increase the demand for foreign exchange and mount pressure on the naira, Afrinvest has said.

It  argued in a report that there would be stiffer demand for foreign exchange for transactions, which may trigger a higher naira exchange rate as companies gradually resume  production.

“We expect stronger FX demand due to the easing of lockdown across major economies to put pressure on the exchange rate in the near term,” Afrinvest argued.

The Central Bank of Nigeria had announced a $100 million weekly intervention for critical export, but reassured that it would inject more foreign exchange into the economy following increased demand.

The demand for FX led to N5 depreciation in the value of the  naira at the parallel market, after it opened at N455 per dollar to close at  N460 on Friday.

The Association of Bureaux De Change Operators of Nigeria (ABCON) had warned members and forex speculators inducing pressure on the naira exchange rate to desist from their illicit activities or lose their money, the association chairman, Aminu Gwadabe, said.

At the spot rate, the naira traded flat at N361 per dollar, while it gained by N1.16 at the NAFEX as it closed at  N385.94 from N387.10, the opening rate for the week.