Naira gains at official FX, flat at investors window

.Drops against Pound, Euro at parallel market

The Nigerian currency, Naira on Thursday appreciated against the US Dollar at the official foreign exchange marke, closing at N305.60 as against the N305.65 stood since beginning of the week, but was seen flat at the Investors and Exporters ( I&E ) FX window, data obtained from the FMDQ OTC has revealed.

But this was not the case at the parallel segment of the forex market, as the local currency dropped to the pound sterling and Euro at N505 and N442 respectively, while compared to N500 and N440 settled the previous day.

Although, yersterday closing rate at the unofficial foreign exchange market, showed the Naira at an unchanged figure of N364 per dollar for the third trading day during the week.

However, the Naira, had stabilised across forex markets and its various segments on Wednesday, but outcome of Thursday trading activities at I&E FX window seen flat at an opening rate of 359.99 per dollar, traded high at 361.50 and settled at 360.25 the price sold on Wednesday.

Meanwhile, the Nigeria’s Vice President, Prof. Yemi Osinbajo, on Thursday at the ongoing world Economic Forum in Davos, Switzerland, said a weaker U.S. dollar did not necessarily hurt Africa’s largest economy oil-producing nation.

Osinbajo, made the comments after U.S. Treasury Secretary Steven Mnuchin, noted that a weaker Dollar benefited U.S. trade balances in the short term.

OPEC member Nigeria is Africa’s largest oil producer. Crude oil sales make up two-thirds of Nigeria’s government revenues and most of its foreign exchange earnings.
According to Osinbajo, “We are concerned most about ensuring that we are able to make our own exports cheaper and we working on all of that. Our major concern is how to make ourselves more competitive,” he added.

Attacks on energy facilities in the southern oil-producing Niger Delta region pushed Africa’s biggest economy into recession in 2016, which was its first in 25 years.

Niger Delta Avengers, the group which claimed responsibility for most of the attacks, last week said it would resume attacks within days.

“We are in constant consultation with all groups in the Niger Delta,” said Osinbajo, when asked about the government’s response to the latest threat.

The country’s recovery since emerging from recession in the second quarter of 2017 has largely been driven by crude oil sales.

Stories by Motolani Oseni