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The naira within a span of hours appreciated by N166 to the dollar in the P2P market, as currency traders re-evaluate their strategies.
The naira peaked at N1279/$ on Thursday evening but settled at N1113/$ as of this writing.
Feelers across markets suggest the gains may be due to the expected inflows of $10 billion of which $7.0 billion is expected from NNPC’s forward sales and $3.0 billion from Qatar, according to a research note by Cardinal Stone Partners.
The inflows will help ease a liquidity crunch weighing on the naira.
The impression among traders especially speculators is that the exchange rate could gain against the dollar in the coming days and as such to avoid avoid holding the bag, they have to sell.
President Bola Tinubu’s government has been struggling to stem the decline in the currency.
The inflows will add to other steps being taken by the government to boost foreign-exchange liquidity, including improving market transparency and allowing domestic entities to issue foreign-exchange instruments, Finance Minister Wale Edun said.
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