Naira appreciates to N361/$ at unofficial forex market

…as CBN lifts FX market with $210m At the end of first trading week in 2019, the Nigerian currency, Naira, appreciated by 0.83 per cent to close at N361 against the US dollar at the unofficial foreign exchange market, even as the Central Bank of Nigeria (CBN) on the last trading day injected a total sum of $210 million into the wholesale segment and other sectors of the inter-bank forex market. Although, the local currency slightly depreciated by 0.23per cent to N365.35 in the Investors &Exporters foreign exchange (I&E) FXwindow. The I&E Fx window recorded a total turnover moderated by 1.9per cent to $479.34 million with 99.95per cent of trades executed within the N360-369/dollar band. A breakdown of the CBN’s FX injections showed that customers in the Wholesale sector of the market received the sum of $100 million with the Small and Medium Enterprises (SMEs) and invisible sectors each getting $55 million to meet the needs of customers. The Bank’s Director in charge of Corporate Communications, Mr. Isaac Okorafor, said the CBN continued from where it stopped in 2018 to maintain the stability being enjoyed in the market. While noting that the Bank had made a commendable effort in keeping the exchange rates at the current levels, Okorafor reechoed the Bank’s Governor, Mr. Godwin Emefiele saying that the current capital flow reversals from the emerging markets were expected to bring out pressures on the market rates. He, however, assured that, in spite of the anticipated pressures, coupled with the forthcoming elections, the Bank was committed to maintaining the current exchange rate policy, given the level of reserves. Meanwhile, one dollar exchanged for N357 in the Bureau De Change (BDC) segment of the market last week. Analysts at Cordros capital said, “Stability remains our theme for the currency, as higher oil revenues (despite the recent plunge in oil price) continue to help shore up the reserves, thereby supporting the CBN’s continued intervention.” Activities in the Treasury bills market were bearish, albeit with a bearish tilt, as market players sold off on the back of the CBN’s frequent OMO auctions. Motolani Oseni