Naira drops further at interbank forex market

As NAFEX records $167.7m daily transactions

The Nigerian currency, Naira on Monday, dropped further at the official foreign exchange market to close at 305.55 to the US Dollar, against 305.50 sold on Friday.

But, with the closing figure of $167.71 million daily turnover at the Nigeria Autonomous Foreign Exchange (NAFEX) window, showed stability at the investors forex segment, while replicating the same amount traded on the last trading day of last week.

Although, the official forex market, had being on the steady growth while comparing yesterday’s closing rate of 305.50 with last Monday’s traded figure of 305.60; even though it was lower significant compared to 305.10 sold last Tuesday.

At the autonomous FX window, opened yesterday’s trading activities at 359.95 to the Dollar against 359.97 exchanged on Friday, represented 0.01 per cent, however, closed at a weaker rate of 360.75 compared to 360.43 sold on Friday.

Also, at the parallel market, the Naira closed at 364 to the dollar, which was lower by a point to 363 that has been trading in the past few weeks.

The Naira, as at close of Monday’s trading activities, sustained weekend rate against the two other major foreign currencies, Pound and Euro at maintained 475 and 425

Meanwhile, the Central Bank of Nigeria (CBN) has sold not less than $3.47 billion in the third quarter in its continued effort in ensuring stability and liquidity in the official foreign exchange market.

Even though, the overnight lending rate on Thursday, dropped to 20 per cent on expectation that a cash squeeze will ease after money market rates more than doubled previous session.

It is however, worthy of notes that the apex bank has kept liquidity tight to support the currency, leaving its benchmark interest rate on hold at 14 per cent this year.

The apex bank, also aims to keep rates high to attract foreign inflows into its bond market to boost dollar liquidity.

Motolani Oseni