Naira gains at parallel market, drops further at official FX

The Nigerian currency, Naira, on Monday rebounded against the US Dollar at the parallel market to settled at 363 compared to 364 sold throughout last week,

however, dropped further at the official foreign exchange market to close at 307 per dollar weaker than 305 exchanged in the recent time, data obtained by the Daily Times showed.

But forex dealers believed that the new closing rate of the local currency could signal a gradual move to exchange rates convergence.

The Naira, also, appreciated by two points against the Euro to close at 428 against 430 sold a week ago, but was seen at unchanged rate of 480 to Pound Sterling at the parallel segment of the forex market.

The Autonomous Foreign Exchange (NAFEX) window, on Monday closed at a better rate of 360.32 compared to 360.65 to the dollar, but was low at 359.85 at the beginning of the trading activities.

The NAFEX, however, recorded total turnover of $114.07 million as at close of yesterday’s trading, the same proceeds declared on Friday when the market close officially for the week.

The autonomous FX window, which is widely believed to have boosted investors’ confidence, in the just concluded week traded total sum of $937.95m.

For instance, the first trading in the week under review recorded transacted figure of $178. 78m, but appreciated the following day to close at $227.73m, however, relapsed at the mid -week to exchanged just $198.71m, lower than previous day,

but better than first trading day before closing the month on a positive note with an appreciated turnover of $218.66m on Thursday.

The Daily Times findings, however, showed that the NAFEX, in the previous week, recorded a stronger transacted turnover of $1.06 billion between Monday 20 November and Friday 24 November 2017.

The NAFEX, on Monday 20, November sold total transacted turnover of $346.36m, represented the second highest turnover in the week, and better than $266.41m sold in the corresponding period last week, but recorded the lowest for the week on Tuesday with $78.48m traded figure.

It would be recalled that the Central Bank of Nigeria (CBN) in April allowed foreign investors to trade the naira at market determined rate, which has weakened the currency to around 360.

To this end, the local currency at the official rate against the US Dollar has been between 305 naira and N306 before dropping to 307 as at close of yesterday trading.

Motolani Oseni