Naira stables as inter-bank FX market is lifted with $311.5m

The Nigerian currency, Naira, at the close of the official trading activities for the week on Friday remained stable, as the Central Bank of Nigeria (CBN), injected a total sum of $311.5 million in the Retail Secondary Market Intervention Sales (SMIS) and CNY 15million in the spot and short-tenored forwards segment of the inter-bank foreign market.

The Director, Corporate Communications Department at the CBN, Mr Isaac Okorafor, disclosed that the dollar interventions were for customers in the agricultural, airlines, petroleum products and raw materials and machinery sectors.

He said the yuan component was for payment of Renminbi denominated letters of credit for agriculture as well as raw materials.

Okorafor further said the market continue to enjoy stability, owing to the regular interventions by the CBN, which according to him had also guaranteed a stable exchange rate for the naira.

He maintained that the bank’s management remains committed to ensuring that all the sectors of the foreign exchange market continues to enjoy access to the needed foreign exchange.

Meanwhile, the naira at the parallel market closed flat last week at N360 against the dollar but depreciated by 0.1 per cent week-on-week to N362.77 against the dollar at the Investors & exporters (I &E) foreign exchange window.

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Elsewhere, total turnover at the I&E window declined by 55.8per cent Week-Till-Date (WTD) to $346.68 million, with trades executed within the N350.00-363.35/dollar band.

However, the naira against the dollar the exchange rate fell (i.e. Naira appreciated) at the Bureau De Change market by 0.28 per cent to N357.00 against the dollar.

Elsewhere, the Naira was flattish against the US dollar at N370 at the Interbank Foreign Exchange market amid the weekly injections.

The Naira against the dollar exchange the rate rose for all of the foreign exchange forward contracts – Spot rate, 1 month, 2 months, 3 months, 6 months and 12 months rates rose by 0.02 per cent, 0.26per cent, 0.30per cent, 0.31per cent, 0.45per cent and 0.57per cent to close at N307.00/dollar, N366.27/dollar, N369.82/dollar, N373.43/dollar, N384.71/dollar and N411.78/dollar respectively.

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Chuka Francis

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