The victory of Donald Trump in the just concluded United States Presidential election has no negative impact on the value of the Nigerian currency, the Naira, as it traded at the parallel market on Wednesday with a significant gains in Lagos, where it exchanged at N460, compared to N465 per US dollar on Tuesday.

 

Forex dealers in Lagos said that there was low demand for dollar at the unofficial market, forcing the price of dollar to crash by five points.

 

This is in line with the views expressed by a herd of market analysts, that Donald Trump’s victory was good for the naira, and many other currencies around the world.

 

A Trump victory saw a plunge in the US dollar, and a record fall in the Mexican Peso, which has lost over 12 percent in the past 24 hours as reported by the UK Guardian.

 

The US dollar has fallen by over three percent to the Japanese yen, while the Mexican Peso is ploughing fresh record lows against the US dollar and the euro, with fears that a Trump presidency will hurt the Mexican economy hard.

 

The greenback fell as much as 3.8 percent against the yen, the biggest intraday decline since the Brexit referendum, 2.4 percent against the euro and 2.3 percent against the Swiss franc.

 

For the Nigerian naira, a drop in the dollar may not necessarily yield a strengthening of the currency against other currencies, but the naira will be stronger, relative to the dollar analysts said.

 

Meanwhile, the Pound Sterling and Euro closed at N560 and N500 respectively.

 

At the Bureau De Change, BDC, window, the dollar was sold at N385, being the Central Bank of Nigeria controlled rate.

 

Also, the Pound Sterling and Euro traded at N560 and N503 respectively.

However, the naira weakened against the dollar at the interbank market, losing N2.49 to close at N307.26 against N305.27 recorded on Tuesday.

 

Traders at the market said that the demand for the green back was low due to the political situation in the U.S.

 

News Agency of Nigeria quoted Harrison Owoh, a BDC operator, as having said that stakeholders in the market were painstakingly watching the political situation in U.S and its effect on the country’s economy.

 

Mr. Owoh said that in the coming days, the demand for the dollar was likely to remain low until the successful transition from a Democratic to a Republican Government in the U.S.

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