Naira firms against major currencies at official, unofficial FX markets
As forex market lifted with $503m in one week
The Nigerian currency, Naira, over the weekend, firmed against major foreign currencies at 365 to the Dollar, strengthened to 483 the Pound sterling and 425 per Euro at the parallel market, while closed at 305.75 to the Greenback against 305.85 sold a week ago at the official foreign exchange market.
This is just as the foreign exchange market boosted twice in the week to the tune of $503.5 million by the Central Bank of Nigeria (CBN),
The Naira, had on the first trading day of the week under review, exchanged at 367 to the dollar, and, however, strengthened the next day to settled at N366, while consolidating on the gains recorded on Tuesday to close at 365, but could only fought hard to retain the appreciated rate for the remaining days during the week at the parallel market.
The local currency, also recorded appreciable points against Pound and Euro within the week, with declined closing rate ofN492 to the pound, which was weaker than 488 traded previous weekend and retained the rate on Tuesday and Wednesday, but rebounded on Thursday by seven points to record new rate of 485; and appreciated further on Friday, closing the week high at 483 at the parallel market.
For the local currency against Euro, it was a better display, even after it had suffered a significant drop on Monday, with the closing rate of N440 from N437 it opened for trading, however, recorded an appreciable points the following day to close at 436 and gains further on Wednesday at 435, 425 on Thursday; and sustained through the weekend at the parallel market.
At the official forex market, the Naira, closed at 305.85 per dollar on the first day in the week, but recorded slight gains of 0.02 per cent to close at 305.80 per dollar on Tuesday, Wednesday and Thursday, before extending its gains on the last day of the week to 305.75.
Meanwhile, the apex bank has continued to sustain liquidity in the Foreign Exchange (FOREX) market as it boosted the market on Friday with $308.5m. This move is expected to further ensure liquidity and stability in the FX market.
It would be recalled that the CBN, had, earlier in the week, lifted the forex market with $195m ahead of MPC decisions. A total sum of $195m was offered in three segments of the market. In the wholesale Secondary Market Intervention Sales (SMIS) of the inter-bank Foreign Exchange market, it auctioned $100m and also intervened in the Small and Medium Enterprises (SMEs) and invisible segments, with the sum of $50m and $45m, respectively. This brings the total intervention for the week to a sum of $503.5m.
The CBN’s Acting Director, Corporate Communications Department, Mr. Isaac Okorafor, who gave the figures, announced that the latest intervention of the CBN in the retail segment was part of the regular interventions of the apex bank, in line with its commitment to sustain liquidity to meet genuine requests in the market.
While warning against speculations in the market, Okorafor said the CBN had put necessary checks in place to guard against the activities of speculators. He stressed the determination of the Bank to continue its forex intervention.
He encouraged genuine users of foreign exchange to approach their banks, as the banks had enough forex to meet their demand.
Stories by Motolani Oseni
