Naira drops against major foreign currencies at parallel market
…..Worst in two months
…..Stables at official FX with $1.15bn NAFEX turnover in one week
The Naira, over the weekend, depreciated further at the parallel segment of the foreign exchange market, with closing rate of 366 to the US Dollar, represented the worst in the last two months, as well as recorded significant drop against Pound sterling and Euro, Daily Times check has revealed.
The local currency, however, maintained the rebounded Thursday rate of 305.95 to the dollar on Friday at the official market, with an appreciable total traded figure of $1.155.75 billion at the Nigeria Autonomous Foreign Exchange (NAFEX) window.
The Naira was seen at 366 per dollar weaker than 363 it has been selling in the last in the recent time, while pound and Euro were traded at 475 and 426, against 474 and 425 traded, respectively on Thursday at the unofficial forex market.
Also, the NAFEX, otherwise known as Importer & Exporter FX (I&E) window, on Friday, relapsed with an open rate of 359.65 to the dollar, compared to profitable rate of 359.70 recorded on Thursday and 360.75 declared a day earlier.
The autonomous FX widow, also, dropped to close at 360.40 per dollar, after closing at 359.56 the previous day and 360.27 on Wednesday.
However, the special FX window, gained a whopping $247.75 million with a total weekly transactions turnover of $1.155.75 billion as at the closure of the official forex market, compared to $908 million sold at the corresponding period last week.
According to the latest monthly Financial Market Dealers Quotations (FMDQ) OTC Securities Exchange report, the total transactions in the foreign exchange market in October has settled at $13.86 billion, represented a decline of 1.23 per cent or $0.17 billion from $14.04bn recorded in September this year,
The FMDQ report for the month of October showed that the Naira appreciated slightly in the Investors’ & Exporters’ (I&E) Foreign Exchange Window closing at N359.72 against the Dollar from N359.76 it opened for trading.
The report stated that trading at a premium to the parallel market also appreciated in the month of October to N363.00 against the Dollar (from N364.00/Dollar at the beginning of the month).
It however, stated that the Central Bank of Nigeria’s (CBN) Official Spot rate experienced a slight depreciation, dropping N0.10 to close at N305.80/Dollar (from 305.70 /Dollar at the beginning of the month).
According to the report, “Total value traded in the I&E FX Window settled at $4.30bn for October, a decrease of 6.68 per cent ($0.31billion) relative to the value recorded in September ($4.61bn). Total value traded at the Window since inception stands at $17.86billion.
Meanwhile, the forex traders believed that the naira is expected to be stable in the week ahead, with the continuous interventions through the injection of dollars into the market by the Central Bank of Nigeria (CBN).
Motolani Oseni
