Traders optimistic of Naira stability across forex market

Foreign exchange traders in the country are optimistic that the local currency, Naira, will remain stable across the official forex markets and its segments.This is just as the House of Representatives Committee on Banking and Currency yesterday applauded the intervention project of the Central Bank of Nigeria ,CBN, at the Administrative Staff College (ASCON), Topo, Badagry, Lagos.

Forex traders, however, believed that as long as the foreign exchange market continues to receive support from the CBN’s intervention and as proceeds of a recent Eurobond issue, which has helped to boost reserves, the Naira will remain stabled. For instance, the Federal Government last Thursday sold $2.5 billion Eurobond last Thursday to help refinance some of its maturing treasury bills rather than roll them over as it has done in the past.

But as at close yesterday trading activities, the Naira, was seen at an unchanged rate of N362 to the dollar, N502 to the Pound and N445 per Euro, respectively at the parallel segment of the foreign exchange market.On the official spot market, the naira was quoted at N306.50 to the dollar against N306.00 traded on Wednesday weaker than N305.90 traded a week ago.

At the Investors and Exporters (I&E) FX window, trading opened at a better rate of N360.06 compared to N360.09 recorded the previous day and N360.01declared on Tuesday. However, traded high at N361.30 the same figure settled on Wednesday before closing at a depreciated rate of N360.66, compared to a relapsed rate of N360.40 recorded and N360.25 stood the previous and preceding days.

Although, the special foreign exchange window, declared a stabled transactions turnover of $195.23 million, the same figure it exchanged on Wednesday better than $164.83m traded on Tuesday and the same volume exchanged on Monday.

Commenting on the level of illegality in foreign exchange transactions in the nation’s borders, President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, said: “It is no more profitable because the security agencies have arrested so many people involved. There is no more gaps in the foreign exchange market. “

He explained that fraudsters were doing it because of the gap, adding that the gap had influenced illegal exportation of dollar.It is because of the gap at the parallel market was wide then but now, we are having no margins. The parallel market rate is N358 to the dollar while the CBN rate is N360. Illegal transactions have reduced drastically and it is one of the reasons that have stabilised the Naira.

But while speaking during the oversight visit of the House of Representatives Committee on Banking and Currency to CBN intervention projects in the South West geo-political zone, on Thursday, the Committee Chairman, Hon. Jones Onyereri, who led other members of the Committee, said that the Committee was impressed with the progress made in delivering on the project and the use of Nigerian contractors in the project.

We are impressed because we didn’t think we can get this kind of outcome judging from our first visit which shows that it will be indeed nice to patronize Nigerian contractors”.Onyereri also commended the quality of job done by the contractors and noted that the CBN interventions at ASCON would create a conducive environment for learning, stating that they are worthwhile.

Also in the inspection team were CBN’s Ag. Director, Corporate Communications Department, Mr. Isaac Okorafor, and the Deputy Director in charge of the Projects, Mr. Oluwole Owoeye.