After gaining points for three consecutive trading days at the official foreign exchange market, the Nigeria local currency, relapsed on Thursday to close at a depreciated rate of N306 to the US Dollar against of 305.75 recorded on Wednesday, 305.80 sold on Tuesday, 305.85 recorded on Monday and 305.90 sold a week ago.
Contrary to this, the Nigeria Autonomous Foreign Exchange (NAFEX) window, at the end of yesterday trading activities declared an appreciable total transactions turnover of $218.66 million compared to $198.71m exchanged on Wednesday but weaker than $227.73m sold on Tuesday and $179.78m exchanged on Monday.
But the NAFEX, at the beginning of yesterday trading settled at a weaker rate of 359.75 per Dollar against 359.72 recorded the previous day before closing at 360.65 compared to 360.02 that was seen at the same period.
Although, it was exchanged at 360.32 on Tuesday, the same figure it was sold on the first trading day in the week. However, the Naira was seen stable on the spot market, due to the investor inflows and the continuous forex intervention by the Central Bank of Nigeria (CBN).
At the parallel segment of the forex market, the local currency for the third day running stood steadied at 364 to the US Dollar at the end of yesterday trading activities, the same rate it exchanged on Tuesday and Wednesday, and also, unchanged at 430 per Euro and 480 to the Pound Sterling.
Forex dealers believed that trades have been consistent on the market for months, helping the currency hold up at around 360 naira per dollar. Nigeria has at least six exchange rates which it has used to mask pressure on the currency.
Traders expect the naira to hold up across its other exchange rates next week hovering at around 305 naira on the interbank market supported by central bank.
According to the latest data obtained from the apex bank official website, , the nation’s external reserves stood at $34.53 billion as of Nov. 24, up nearly 3 per cent from a month earlier, represented an increase of 40.5 per cent this year compared to 2016.
Meanwhile, Fitch rating agency, says Nigeria targets consolidation but revenues may fall short, but believed that the Africa’s largest economy expect rising oil revenues to aid consolidation, but forecasted that its deficit to narrow less, to 2.4 per cent of Gross Domestic Products.
Stories by Motolani Oseni