The struggling economy of Nigeria is currently experiencing mixed fortunes, even though the indices are more positive. The naira rise is due to the activities of the Central Bank of Nigeria, which has inspired renewed confidence in investors.
Nigerian naira gained on Friday to trade at about 370 per dollar at the parallel market, while the British pound and European euro went for 480, 415, respectively.
However, the country’s foreign exchange reserves a bit low from $30,360,798,903 to $30,329,636,331 — shedding over $30 million in less than 24 hours.
The Nigeria Stock Exchange also raked in more in the market. Market capitalisation and all share index (ASI) peaked at an all year high of N10,845,347,307,117.93 and 31,371.63 respectively.
Top trades for the day were seen around banking stocks from Diamond Bank, First Bank, UBA, and Access Bank, while the top gainers were Nestle and Dangote Cement.
Traders have said the spike in stock prices is due to the new foreign exchange actions taken by the CBN less than two months ago, giving investors a window for easy import of capital, and easy repatriation of funds.
In May, after the window was opened, the market indices increased by about 15 percent, to record the highest monthly gain since 2008.
Experts suggest that long as the CBN continues to be consistent with its policy actions, the gigantic drive in the market can be sustained.
Edited by McDike Dimkpa