The Naira fell back 0.46 percent to 217 against the dollar on Wednesday, a black market dealer has said. There has been a decrease in demand for dollars as opposed to the pre-election hysteria on the parallel market.
The main shares index rose 8.4 percent as financial markets in Nigeria witnessed the non-violent outcome of the closely contended elections.The currency opened at 197 to the dollar, which it had traded at since February, after the Central Bank of Nigeria (CBN) pegged the rate.
Ayodeji Ebo, head of research at Afrinvest, stated that the peaceful conclusion of the election has calmed the fears of foreign investors concerning the market. “Investors were waiting on the sidelines to see election concluded in a peaceful manner. So everyone is taking positions now while those that are in are not willing to sell,” he said.
The index currently stands at 34,400 points, extending gains to a ninth successive session. Thus making it the longest winning streak this year following the peaceful handover.