Naira rebounds as CBN lifted forex market with $210m

….FG welcomes latest GDP growth of 1.40% in Q3

The Nigerian currency, Naira, on Monday, rebounded at the official foreign exchange market, just as the Central Bank of Nigeria (CBN) lifted the forex market with total injection of $210 million.

In a clear indication of ongoing progress, the Nigerian economy has improved further, according to the latest Gross Domestic Product (GDP) growth in third quarter of 2017 by 1.40 per cent in real terms.

However, the local currency, at the official forex market closed at 305.90 against 305/95 traded to the US Dollar on Friday, even though it extended its woes at the parallel segment of the forex market to close at 365 per dollar, while depreciated further to 476 to the pound against 475 traded over the weekend and 426 against the Euro, weaker than 425 settled during the weekend.

At the Nigeria Autonomous Foreign Exchange (NAFEX) window, the naira, opened at 359.75 to the dollar weaker than 359.75 recorded on Friday, as well as closing rate of 360.42 compared to 360.40 per dollar exchanged as at close of last week trading activities.

Although, the Importer & Exporter FX window recorded a daily turnover of $346.36 million Monday, the same figure that was traded on the last trading day of last week.

Consequently, figures from the apex Bank showed that the interventions were in the wholesale, small and medium enterprises (SMEs) and invisibles windows.

The Acting Director, Corporate Communications at the CBN, Mr. Isaac Okorafor, said the bank offered the total sum of $100million to the wholesale segment, while the SMEs segment received the sum of $55m.

He noted that the invisible segment, comprising tuition fees, medical payments and Basic Travel Allowance (BTA), among others, also received an allocation of $55m.

According to him, the releases were aimed at boosting liquidity, trade and ease of remittances for legitimate personal commitments.

Okorafor said the bank was quite pleased with the rate of N360/$1, noting that the continued intervention by the CBN in the inter-bank forex market had largely checked unwholesome activities of currency speculators.

Meanwhile, the NBS report noted that the development represents the second consecutive positive growth since the emergence of the economy from recession in the second quarter of 2017.

The report explained that the growth is 3.74 per cent points higher than the rate recorded in the corresponding quarter of 2016, put at –2.34 per cent.

It also revealed that the figure is higher by 0.68 per cent points from the rate recorded in the second quarter of the same year, put at 0.72 per cent.

The second quarter growth figure was revised to 0.72 per cent from 0.55 per cent, following revisions by NNPC to oil output, which hence led to revisions to oil GDP .

Further analysis shows that quarter on quarter, real GDP growth was 8.97 per cent, while ‘Year to date Real GDP’ growth stands at 0.43 per cent.

In the quarter under review, aggregate GDP stood at N29.5 trillion in nominal terms, the NBS said. The growth figure is higher when compared to N26.5trn in third quarter of 2016, resulting in a Nominal GDP growth of 10.98 per cent.

Motolani Oseni