Naira steadies at official FX, gains slightly at parallel market
.As NAFEX records mid-week turnover of $301.2m
The Nigerian currency, Naira, on Wednesday stood steadied at the official foreign exchange market to close at 306.30 the same rate it exchanged the previous day, but gained slightly at the parallel market segment of the forex market.
This is just as the Nigerian Autonomous Foreign Exchange (NAFEX) window, recorded a significant mid-week transactions turnover of $301.2 million, stronger than $96.77m declared on Tuesday and $209.05m sold on the first trading day of the week.
The NAFEX window, however, began yesterday trading at 359.75 per dollar the same price it sold on Tuesday, but closed at a depreciated rate of 360.41 compared to 360.37 exchanged the previous day, however, better than 360.50 per dollar closed on Monday.
At the parallel market, the local currency was seen at an unchanged rate of 363 per dollars, but recorded gains against the Pound sterling and the Euro, respectively.
The Naira, recorded a point against the pound to close at 482 compared to 483 sold on Tuesday and 426 per Euro against 427 stood the same period.
Consequently, the apex bank in its incessant efforts to boost liquidity and alleviate dollar shortages had intervened in the interbank foreign exchange market, with an injection of the total sum $210m.
The bank said, in a statement, it had released 100 million dollars earmarked for the wholesale market, 55 million dollars for small businesses and individuals, and 55 million dollars for certain dollar expenses such as school fees and medical bills.
According to figures obtained from the bank, Tuesday’s interventions were for the Wholesale, Small and Medium Enterprises (SMEs) and invisibles segments of the market.
The Acting Director, Corporate Communications at the CBN, Mr. Isaac Okorafor disclosed that the Bank offered the sum of $100m to the wholesale segment, while the SMEs and invisibles segments each received the sum of $55m.
He reiterated that the releases were meant to boost liquidity, trade and ease of remittances for legitimate personal commitments.
In spite of the stable rate of N360/$1 and the expected inflow from various sources such as the Eurobond and remittances from the Diaspora, Okorafor said the Bank would continue to intervene in the inter-bank forex market to guarantee liquidity.
While also noting that the interventions had largely checked unwholesome activities of currency speculators, he said that the CBN would not relent in its daily monitoring of activities in the market in order to ensure that all concerned operate in line with extant rules.
Meanwhile, the nation’s foreign exchange market saw transactions worth $1.34 million at its interbank window as at close of yesterday at a rate of N314.50 per dollar.
Stories by Motolani Oseni
