Naira strengthens as FX market lifted with $195m liquidity
The Nigerian currency, Naira, on Wednesday, strengthened further against the Euro and the Pound sterling at the parallel market, as the official Foreign Exchange (Forex) Market lifted earlier in the week with an injection of $195 million forex supply by the Central Bank of Nigeria (CBN).
The local currency, had recorded more gains over the Euro since the beginning of this week, but was seen at 420, the same rate it traded on Tuesday, however, appreciated against the Pound to close at 473, compared to 475 traded the previous day. Although, it maintained 363 selling rate per US Dollar at the parallel market,
At the Investor & Exporter FX (I&E) widow, the Naira, recorded significant increase at the close of yesterday trading activities, with an opening rate of 359.25 to the dollar stronger than 359.66 recorded on Tuesday, but weaker than 360.15 declared on the first trading day of the week, represented just 0.11 per cent gain, even as it closed at a better rate of 360.33 per Dollar, compared to Tuesday 360.46, although, lower than Monday 360.05, and 360.57 sold over the weekend.
The I&E FX total daily transactions of $161.03 against $169.63 million on Tuesday and Monday $149.90m.
Meanwhile, the apex bank has intervened in the inter-bank Foreign Exchange (Forex) Market with the injection of another $195m.
Figures released by the apex bank on Tuesday, indicated that it offered a total sum of $100m to the Wholesale segment, while the Small and Medium Enterprises (SMEs) segment received the sum of $50m.
The invisibles’ segment, comprising tuition, medical payments and Basic Travel Allowance (BTA) received $45m.
The Central Bank’s Acting Director, Corporate Communications Department, Mr. Isaac Okorafor confirmed the figures, noting that the intervention was in line with the CBN’s commitment to continue to ensure FOREX liquidity and meet legitimate demand.
Okorafor maintained that the CBN would continue to intervene in the nation’s FOREX market in order to sustain the liquidity in the market and guarantee the international value of the Naira.
Motolani Oseni
