Naira stables at N360/$ amid liquidity from foreign investors, exporters — Daily Times Nigeria Press "Enter" to skip to content

Naira stables at N360/$ amid liquidity from foreign investors, exporters

By Motolani Oseni

The Nigerian currency, Naira, on Thursday, gained 0.05 per cent to close at N360.14 to the US Dollar at the Investors and Exporters FX (I&EFX) window.

At the beginning of yesterday trading activities, the local currency opened at a stable rate of N360.25 per cent per dollar, but appreciated marginally to close at N360.14 at the I&E FX window.

The special forex window recorded a total transactions turnover of $204.80 million. But the naira at the Bureau De Change segment of the forex market exchanged at an average of N360/$1 in the BDC segment of the market.

But foreign exchange traders, however, expected Naira to be stable at around the N360 to the dollar as ample dollar liquidity from foreign investors and exporters provides support for the currency.

The naira traded in a range between 360.12 and 360.50 per dollar on Thursday, similar to levels quoted last week. Traders say the naira has found support at 360 because the central bank buys excess dollar liquidity at that level.

Nigerian Treasury yields are still attractive to foreign buyers, which has helped to support the naira, traders said, adding that exporters have also been selling hard currency.

Meanwhile, the Central Bank of Nigeria (CBN) has continued its weekly intervention, injecting $210 million into the Inter-bank Foreign Exchange Market in the sustenance of liquidity in that segment of the market earlier in the week.

Figures obtained from the CBN on Tuesday indicated that authorized dealers in the wholesale segment of the market were offered the sum of $100million, while the Small and Medium Enterprises (SMEs) segment received the sum of $55 million. 

The apex bank spokesman, Mr Isaac Okorafor reiterated CBN’s commitment to boosting the interbank foreign exchange market to ensure liquidity and stability in the market.

Similarly, customers requiring foreign exchange for Invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55 million.

It would be recalled that the apex bank had a week ago, Friday, April 5, 2019, injected the sum of $247.8million and CNY34.8million into the Retail Secondary Market Intervention Sales (SMIS) segment.