Naira falls to N218/$1 as stock index rises

The naira,fell again on Monday, trading at N218 to the dollar on the parallel market, despite growth in the Nigerian stock index same day.

The naira, which traded around 208 to 210 over the past week, fell to 213 on Friday, August 28, only to fall again by 2.34 percent to 218, following a higher demand on the dollar.

“There is an upsurge in demand for the dollar due to increase in liquidity in the system, with some buyers wiling to pick up dollars at any available rate,” Aminu Gwadabe, president of Bureau de change operators told Reuters.

The naira was also reported to be trading at 199 to the dollar on the official interbank window at 1204GMT, weaker than the 197, which it traded since February.

On the other hand, Nigerian stocks rose more than two percent in early trade on Monday, getting over last week’s fall to a six month low.

The benchmark stock index rose 2.52 percent to 29,540 points with investors buying across the board in banking, breweries, cement and energy sector stocks.

Guiness and Nestle topped the gainers table, gaining N11.98 and N11.78 respectively, while Julius Berger lost a naira on the stocks.

On Tuesday, August 24, Nigeria’s stock index hit a six month low; a stance from which it is recovering.