The Naira is gaining strength against the USD and other foreign currencies, and some inside sources are saying more is coming. Although we don't know how much more is coming and how long this strength gain will continue because this is not the first time the naira would gain only to fall back again after a while.
Take a look at the movement for the last 3 days:
3 days ago:
2 days ago:
1 day ago:
Today:
We can see the progress is consistent even though not huge.
A number of reasons are being given for this progress, some of the major reasons are:
• Nigerians in Diaspora are returning for the holidays with foreign currencies and increasing the supply of foreign currencies around, thereby reducing demand and price.
• There is now a method of tracking the supply and demand of foreign currencies on the market, and it is now clear that the demand for foreign currencies has always been low and not as high as previously thought. The supply is way more which means, according to the law of economics, the price has to drop.
This new method of tracking is known as the: Electronic Foreign Exchange Matching System (EFEMS)
All of these are valid, but I see how the current Bull Run is affecting this too.
The Bull Run's Role
With the USD being that stronger against the naira Nigerians are usually quick to sell USD for naira so they can do all their spending and balling, even though a great lot of them still prefer to save in USD.
The number of sales has increased exponentially due to the Bull Run and these sales are taking care of the supply of USD. This much supply then reduces demand and price follows suit, it's the law of economics.
This is a beautiful example of some of those sales:
Hopefully, the Naira will gain more strength and stay stronger for longer.
The End
Hi there, my novella Professor Otagburuagu just got published. It promises to be thoroughly entertaining and intellectually stimulating. Written by myself and illustrated by Scandinavian artist @ katharsisdrill. You can get it from me for just 4 HBD.
You can also order the hard copy from anywhere in the world via this link:
https://katharsisdrill.art/the-katharsisdrill-shop/professor-otagburuagu/
Thank you!