The Naira yesterday for the fourth consecutive day maintained the 498 per US dollar, having traded since the foreign exchange market opened on Monday for the week operations at its parallel segment.
The naira at the official foreign exchange market gained slightly by .25 to close at 305.25 against 305.50 per dollar it traded between Monday and Wednesday.
However, the naira over the week was observed to have weakened against the Pound Sterling and Euro, as it stood at 610 and 525 on Thursday against 607 and 527 it sold respectively on Wednesday.
Forex traders have said that naira is seen broadly stable on the parallel and official foreign exchange market next week as international money transfer agents sustain dollar sales to bureau de change operations.
The local currency was quoted at 498 to the dollar on the open on the black market throughout the week, broadly unchanged from 497 a dollar last week, while banks quoted the naira at 315 a dollar, but closed 305.25 to the dollar the level it has traded at since August last year.
“Confidence is gradually returning to the forex market as a result of improved foreign exchange reserves, dollar sales by international money transfer agents and central bank assurance it will continue to support the local currency,” one trader said.
Meanwhile, the Central Bank of Nigeria (CBN) at the end of its two-day monetary policy committee meeting on Tuesday, reiterated its determination to continue to provide hard currency, with priority given to manufacturing industries that need to import raw materials and spare parts.
CBN Governor, Godwin Emefiele, therefore, warned against reckless depletion of the recent robust nation’s foreign reserves, currently standing at $28.9 billion.
“The fact that we have begun to see some accretion to the reserve does not mean we should be reckless,” he warned.
He said the CBN “will continue with the policy of ensuring that forex is made available to those who are importing raw materials and supporting the agricultural sector but not to those who want to engage in less important sectors of the economy.”
“It is exciting to see this (rise in foreign reserves) happen. We do not run a floating regime, we run a managed float. What that means is that from time to time we will continue to intervene in the market to ensure that the exchange rate does not go beyond our expectations and those interventions would be to moderate the risk as we deem necessary,” he said.
Reacting to accusations that the apex bank is keeping multiple exchange rates, the CBN governor appealed to “those who are out there fomenting this bad stories in order to portray the monetary authorities in bad light to please assist us, if they have questions they should please approach us, we would respond to them as appropriate.”
Emefiele said the allegations of multiple rates is unfortunate and unfair from those with direct access to information in the CBN. “What I had expected is that they would talk to us, I know they know but of course the objectives they’re pursuing is best known to them,” he said.
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