Naira steadies across FX markets as NAFEX declares $234.2m turnover

The Nigerian currency, Naira, a day after the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held major economic indices unchanged, stood steadied against the three major foreign currencies, across the official and official forex markets, Daily Times check has revealed.

But the Nigerian Autonomous Foreign Exchange (NAFEX) widow, rebounded from its low daily turnover recorded on Tuesday, to declare an improved figure of $234.2 million against $78.5m transacted a day earlier, even though it was weaker than $346.90m sold on Monday.

Although, the Autonomous FX window, opened Wednesday trading on a weaker note of 359.66 compared to N359.51 to the US Dollar exchanged the previous day, as well as the closing rate of 360.65 against 359.87 per dollar recorded on Tuesday and 360.42 on Monday.

The local currency at the official forex market was seen at the end of yesterday’s trading activities at 305.90 to the US Dollar, the same rate it was sold on Tuesday, however, slightly stronger than 305.95 traded last Friday.

At the parallel market, the local currency maintained an appreciable rate of 364 per dollar, recorded on Tuesday, which was slightly stronger than 365 sold on Monday, while Pound sterling, also, remained unchanged at 476 and 426 to the Euro.

Meanwhile, despite fragile recovery nature of the Africa’s largest economy, the apex bank, at its last meeting for the year on Tuesday, kept benchmark interest rate unchanged at 14 per cent.

Although, there have been mixed reactions over the committee’s decision to hold the indices unchanged, but the CBN Governor, Godwin Emefiele, on Wednesday, noted that the Central Bank, is on course to realise its target of bringing the country’s inflation rate down to single digits by next year.

The National Bureau of Statistics, NBS, said in its latest Consumer Price Index, CPI, Report for October, that average headline monthly inflation rate for the next five months of the year (June to October 2017) stood at 1.06 per cent.

The report said the yearly rate was 0.07 per cent points lower, from 15.98 per cent in September to 15.91 per cent in October 2017.

But the governor, who spoke at the end of the two-day MPC meeting in Abuja, said the bank was working hard with the support of other important monetary and fiscal policy authorities to bring it down to single digits.

“When we talked about exiting recession in the second quarter of this year, many people did not believe. We are optimistic that our forecast to hit single digits by next year will come to pass,” he said.

Although he acknowledged the forecast was a long journey, the CBN governor said, “with tenacity, lots of work, aggression and commitment by policy makers (monetary, fiscal and trade), we will get there and in a short time.”

“As policy makers, we cannot rest on our oars. We need to remain focused. For a country that grows her population by an average of three per cent, nothing short of going back to the historical levels of about six per cent would be considered good,” he added.

Part of efforts to create the environment for the economy to thrive and return to the path of sustained growth, he pointed out, was government’s determination to build and provide infrastructure to promote investment.

He confirmed the $3 billion dual-tranche bond issue announced on Monday by the Federal Government was part of the recent $5.5bn loan request by President Muhammadu Buhari, approved last week by the National Assembly for infrastructure development.

Although the bond issue was over-subscribed by over $11bn, the CBN governor said government was only able to access $3bn under the Global Medium Term Note programme, comprising $1.5bn 10-year and $1.5bn 30-year series.

Emefiele said the 10-year series, which would attract a 6.5 per cent interest rate per annum, and the 30-year series at 7.625 per cent interest rate, would be deployed for key infrastructural development projects.

Motolani Oseni