Diaspora Dollars help Steady Nigerian Naira

LAGOS Dec 8 (FxMallam) The Nigeria Naira on Thursday, held steady against the United States Dollar in the Parallel Market due to signs of dollars inflow from the Diaspora. 

The local currency fell week-on-week on Thursday to 485 to the dollar on the parallel market from 480 a dollar last week but has remained steady all week.

The Naira was was quoted by commercial lenders at 315 a dollar on the official interbank market.

However, the story was different from the Naira against the Euro and the British pound.

The Naira crashed against the Euro falling from 510 it traded on Wednesday to close at 516 on Thursday while also falling from 600 to 608 against the British Pound

According to Reuters, “the naira is expected to hold steady around its present level against the greenback in the parallel and official interbank market as dollar flows from Nigerians living abroad who are expected to visit home during the December holidays.”

“Demand for the dollar is seen dropping ahead of the Christmas as businesses gradually wind down, while dollar flows from Nigerians in Diaspora visiting home on holiday is expected to increase supply in the market,” one dealer said.