NAFEX transactions turnover hits $1.06bn in one week

….As Naira steadies across FX markets, lifted by $287.9
The Nigerian Autonomous Foreign Exchange (NAFEX) widow, recorded total turnover trade of $1.06 billion in just one week, between Monday 20 November and Friday 24 November 2017, findings by the Daily Times Nigeria have revealed.

However, the Naira, at the end of Friday sustained the slightly appreciated rates declared on Thursday against the three foreign currencies across the forex markets,

as the Central Bank of Nigeria (CBN) continued to bridge the gap between parallel market and official market rates with injections of $287.89 million into the currency market to meet request for industries, while extending efforts to boost liquidity and alleviate shortages.

The NAFEX, at the beginning of the week under review declared total transacted figure of $346.36m, represented the second highest turnover in the week, and better than $266.41m sold in the corresponding period last week, but recorded the lowest for the week on Tuesday with $78.48m traded figure.

At the close of Wednesday trading activities, the mid week trading closed at a rebounded figure of $234.23m turnover, compared to $96.43m stood last Tuesday.

Although, it relapsed the following day to close at $214.84m, weaker than 359.53m sold on a week ago and dropped further to close the week at $179.78m, compared to $346.36m transacted the previous Friday.

The local currency, Naira, over the weekend stood steadied against the thtee major foreign currencies at 475 to the Pound the same rate it was exchanged since the mid week, and 425 to the Euro at the parallel market.

The local currency, also, remained unchanged at 364 per dollar at the unofficial forex, but closed high at the unofficial FX market at 305.85 stronger than 305.90 sold on Thursday.

However, the NAFEX, otherwise known as Importer & Exporter FX widow, rebounded with an open rate of 359.52 against 359.97 recorded on Thursday, weaker than 359.66 sold on Wednesday; and N359.51 recorded on Tuesday, but was unchanged at 360.65 sold the previous day, but lower than 359.87 declared earlier in the week.

Speaking to the Daily Times on the sidelined of the Workshop, organized by the Nigeria Deposit Insurance Corporation (NDIC), for Business Editors and Finance Correspondents Associations of Nigeria (FICAN) in Kano,

Chairman House Committee on Insurance & Actuarial Matters, Honorable Olufemi Fakeye, said: “As far as I know the Naira is not floating, but still managed.

I think they just want assure that at 360 the US Dollar, for people that are not critical to the economy.

“For instance, I’m important to the economy, but not critical because, I’m not a manufacturer, whose factory might go down because he couldn’t get raw material.

“So, if they ask me to go and pay 360 to gets a dollar for children studying in abroad, I think that is fair enough but for a manufacturer, if you say to him the same thing, he might let go of all his manufacturing staff, the lower the rate for them, the better for government activities.”

Meanwhile, the I&E FX window recorded $14.69BN in four months, between July and September 2017, as the CBN continued to bridge the gap between parallel market and official market rates.

In our fact findings, we observed that the I&E FX in October rose by 7.3 per cent to $4.53bn from $4.22bn in September 2017. The I&E FX window for August moved to $3.68bn, an increase of 62.8 per cent from $2.26bn in July.

FMDQ OTC had reported that 10 commercial bank traded N70.88trn overall turnover on the FMDQ OTC Securities Exchange between January to September 2017.

Meanwhile, the apex bank has defended the local currency with $4.8bn between July and October this year.

Data gathered by our correspondent revealed that the apex bank highest intervention in four months under review was $1.5bn in August, followed by $1.37bn in October.

The CBN had defended the Naira with $1.2bn and $727.5m in September and July of 2017, respectively.

For the first three months, the CBN’s $1.37bn in October comprises of $400m in whole sale; $200m in Small and medium enterprises (SMEs); $180m in invisibles; $306.3m in SMIS, and $285.70m in agriculture, airlines, petroleum, and raw materials segments.

In September, the apex bank injected $485 million to Retail Secondary Market; SMEs, $300m; invisibles $255m and $200m, to wholesale segments

The bulk of the disbursement totaling $561m in August was injected to the clearance of the backlog of matured foreign exchange obligations for raw materials and machineries for manufacturing companies, agricultural chemicals,

and airlines – was for Retail Secondary Market Intervention Sales (SMIS), while the balance went to settling wholesale, $500m; SMEs, $235m, and invisible $200m, demands

Motolani Oseni