Naira drops at NAFEX, settles at 369/$1 at parallel market
The Nigerian currency, Naira, in the recent weeks has lost its gaining streak against the US Dollar at the parallel market, as it closed on Thursday trading activities at a slight depreciated value of 361.17 at the NAFEX window; and 369 as against 368 sold on Wednesday at the parallel market.
Before the recent intervention in the official foreign exchange market by the Central Bank of Nigeria (CBN), financial experts have blamed the naira’s value depreciation to lack of continuous weekly supply of forex into the market, but despite the apex bank effort in ensuring the local currency rebounded after injecting a whopping $364 million, the naira had closed at 368 on Wednesday; and further dropped to 369 on Thursday at the parallel market.
Although, it remained steadied against the two other major foreign currencies, Pound and Euro, traded at 478 and 430, respectively, which was the same rate exchanged on Wednesday at the unofficial segment of the forex market.
The naira, which had recorded positive points at the NAFEX, also known as Investors and Exporters FX window for two trading days halted yesterday, when it closed at a lower rate of
361.17 compared to 359.69 closed on Wednesday, which showed a decline of 0.41 per cent, even as it opened the trading activities at a better rate of 362.39 compare to 362.92, representing a 0.14 per cent.
The autonomous FX window, however, recorded a significant turnover of $236.97 million against $93.21 million on Wednesday, Tuesday $117.36 million and $142.88m sold on Monday, FMDQ OTC data has revealed.
At the official forex market, the naira, for the third day running remained unchanged at 305.65 per dollar but depreciated slightly to the dollar compared to Monday rate of 305.60.
The naira, at the interbank market appreciated to 360.75 against 366.05 sold on Wednesday, Tuesday and Monday. It however, strengthened to 464.50 to the Pound, compared to 471.36 traded on Wednesday, 471.28 on Tuesday; and 428.35 on Monday.
Considering the above exclusive forex analysis by The Daily Times, it showed that the Nigeria’s currency, is losing the momentum it was gathering against the dollar over the time.
Although, forex experts had said that the development follows lack of dollar sale by the apex bank on Monday, but this was not the case even after the central bank intervened in the forex market recorded no positive effect on the naira at both the official forex and unofficial markets.
The local currency has been steady rise since February this year after the central bank started a weekly intervention in the foreign exchange market.
Meanwhile, the apex bank in a continued effort to sustain liquidity in the Forex Market had increased its usual $195m injection into the market to $364m on Tuesday to boost Retail Secondary Market Intervention Sales (SMIS) with $264.1m, getting the largest allocation from the total injected fund.
While the wholesales, Small and Medium Enterprises (SMEs) and invisible windows to the tunes of $195m.
Also, said that $100m was offered to authorised dealers in the wholesale window; adding that the results for the requests sent to the CBN by authorised Forex dealers on behalf of their customers will be made available.
