The naira for the third consecutive time gained strength against the dollar as it finished market bidding Thursday at N4.0999 to one America dollar.
As a result the naira appreciated by 8 kobo or 1.9% on the previous rate of N4.1707 a forthnight ago.
At N4.09999 to the dollar the foreign exchange market cumulative demand was $101.3250 with $1.3250 above the #100 million supplied to the market. At the rate the curtain on foreign exchange demand was drawn and the rate thus become the marginal rate that will rule the market for the new two weeks.
The bids submitted by banks at the bidding session were consistent as the divergence was minimal, a great departure from previous bidding sessions.
The highest bid was N4.222 to the dollar submitted by Premier Bank Limited and this was closely followed by Orient Bank Nigeria Limited with bid rate of N4.2005 to the dollar.
A total of 41 banks submitted bids that avaraged N4.1 to the dollars while 8 submitted bids that average of N4.0 to the dollar. The lowest bid of N4.00 – $1 was submitted by First Interstate Merchant Bank which however failed to go home with any foreign exchange.
Research economics with bank’s have attributed this resortable bid now submitted by banks to the concern expressed by the public over the falling naira. They also said that with the Christmas around the corner most industrial concerns have closed up so that demand for foreign exchange has eased off.
Dr. Pius Okigbo believes that the market in which foreign exchange is traded has not been free especially on the supply side. As a result of the inelastic supply of foreign exchange the amount of which si predetermined and the high demand for foreign exchange, the naira has become grossly undervalued.
