Naira closes at 305.6/$1 at interbank FX market

By Ihesiulo Grace

19 October 2017

News

.As NAFEX records $328m turnover

The Nigerian currency, Naira, ended Wednesday’s trading activities at a more depreciated rate of 305.60 to the US Dollar at the official foreign exchange market.

Contrary to this development, the Nigerian Autonomous Foreign Exchange (NAFEX) window, as at close of yesterday’s transactions recorded total daily turnover of $328.01 million, compared to $268.18, representing an increase of $59.83m.

The Naira, had closed on Tuesday, at a depreciated rate of 305.55 to the US Dollar,even though it was sold the same rate on Monday, before 305.60 on Wednesday, which was more lower than 305.50 sold on Friday at the interbank forex market.

The Naira, also, remained unchanged at the parallel market, to close at 364 to the dollar the same it was exchanged on Tuesday, but lower by a point, while compared to 363 sold over the weekend and also sustained the previous day closing rate against the two other major foreign currencies, Pound and Euro at 475 and 425, respectively.

However, the Importers and Exporters FX window yesterday recorded a rebounded result to open trading with an appreciated figure of 358.89 to the dollar, compared to 360.17, representing 0.38 per cent gains and also, extended its gaining streak to close at 360.27 against 360.42 traded on Tuesday and 360.75 recorded on Monday.

But despite continuous intervention in the foreign exchange market by the Central Bank of Nigeria (CBN), the Nigeria latest external reserves have touched almost highest in three years to stand at $33.11 billion.

The latest reserves balance represented the same level last seen since December 2014, but began its rebounded journey few months ago, The Daily Times check has revealed.

Earlier this month, precisely October 3, 2017, the foreign reserves stood at$32.740bn against the balance of $32.046bn on September 19, representing total growth of $693.704m in just11 working day.

Meanwhile, the Federal Government of Nigeria was to sell N133.78bn worth of Treasury bills at an auction on Wednesday, traders said on Wednesday.

The apex bank is offering N32.4bn in three-month paper, N35bn in six-month bill and N66.38bn in one-year note.

The bank issues treasury bills twice a month to help the government to finance its budget deficit, curb money supply growth and provide an avenue for lenders to manage liquidity.
The Debt Management Office plans to sell N100bn in five and 10-year bonds on Oct 25.