By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian naira on Wednesday gained 0.5 percent on the black market to trade 217 to the dollar after the 2015 presidential elections in the country.

The Nigerian local currency according to Cordros update gained 14 basis points (bps) and 65 bps against the greenback and pound to trade at N199.00/$1 and N293.36/£1 respectively.

The report says the naira also increased by 19 bps on the euro to trade at N213/€1. “Reduced demand for the dollar (for elections/politics) and the gradual inflow from foreign investors should increase liquidity in the interbank market and enhance the stability of the Nigeria’s local currency.

While Investment One Research affirmed the local currency appreciated relative to the dollar by 0.12 percent to close at N199.05/$1.

Investment One added that today’s gain came as a result of continued support from special dollar sales by the Central Bank of Nigeria (CBN).

“On the contrary, we saw the local currency weaken by 0.03 percent to the pound sterling and 0.28 percent to the euro,” the report added.

It further affirmed that the pounds sterling/naira and euro/naira pair closed at respective levels of N295.36/£1 and N214.43/€1. “Despite support by the CBN, our outlook for the local currency remains dim,” Investment one said.

The naira has lost 20 percent of its purchasing power in two (2) devaluations by the central bank since November 2014.

The CBN in an email statement at the close business today reported the Interbank closing rate was 197 to a dollar.