Naira relapses against dollar at official forex market

…Drops points over pound at parallel segment
…As I&E FX window records $321.21m
After trading at N305.70 against the US Dollar for three consecutive days during the week, the Nigerian currency, Naira, on Thursday, relapsed to close at a slightly depreciated rate of 360.75 at the official foreign exchange market, data obtained from the FMDQ OTC has showed.

The Naira, also, dropped three points against the pound sterling at the parallel segment of the forex market, while stood steadied at N364 to the dollar and N448 the Euro respectively, the same rate they have been trading since Tuesday this week.

At the Investors and Exporters (I&E) FX window, the Naira as of yesterday trading activities began trading on positive note with opening rate of N360.05 to the dollar against N360.17 stood on Wednesday, however, traded high at N362. 00 before closing weak at 360.57 compared to N360 to the dollar sold the previous day, N359.91 recorded on Tuesday,and N360.37 exchanged on Monday.

The Investors’ FX window, at the end of yesterday trading activities declared an improved total transactions turnover of $321.21million, better than $125.08 million, but lower than $334.32 sold on Tuesday and $655.62 declared on first trading day of the week.

But forex traders are optimistic that the local currency, that is ikely to remain stable against the dollar next week as demand weakens whenever the unit trades below 360 per dollar, traders said.

Traders said most forex users are not willing to source dollars weaker than 360 at the investors window and that offshore investors have been buying local debt in search of yields, boosting liquidity on the currency market.

On the official market, the naira was quoted at 305.70, supported by the central bank’s regular intervention.

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Dailytimes Staff

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