Naira stables as forex market lifted with $210m

naira

Following the fresh injection of the total sum of $210 million into the interbank foreign exchange market, the Nigerian currency, Naira on Tuesday stabilised at the official FX market.

As at close of yesterday trading activities, the naira stood at an unchanged rate of N305.80 per dollar at inter-bank foreign exchange market, the same rate it traded on Monday.

The naira, however, gained three points against the pound sterling to close at at N508 compared to N510 sold on first trading day of the week. Although, it dropped slightly over the Euro with new closing price of N447, which was lower than N445 exchanged the previous day.

At the Investors and Exporters ( I&E ) FX window, the local currency, opened at a weaker rate of 360.20 as against 360.14 recorded the preceding day, before trading high at 361.50 but eventually closed at 360.31, compared to 360.35 sold on Monday.

Meanwhile, the apex bank has again ensured that there is availability of forex and also meet customers requests in various segments of the market.

The CBN, injected another sum of $210million into the inter-bank Foreign Exchange Market, as the figures obtained from the Bank, showed that the sum of $100million was offered to authorized dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment received the sum of $55 million.

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.

The Banks Acting Director, Corporate Communications Department (CCD), Mr. Isaac Okorafor, confirmed the figures, adding that those who made bis in the wholesale window would receive value for the bids on Tuesday, February 06, 2018.

Okorafor reassured the public that the Bank would continue to intervene in the interbank foreign exchange market in line with its quest to sustain liquidity in the market and maintain stability. He added that the steps taken so far by the Bank in the management of forex had paid off, as reflected by reduction in the countrys import bills and accretion to its foreign reserves.

Meanwhile, the naira continued its stability in the FOREX market, exchanging at an average of N360/$1 in the BDC segment of the market on Monday, February 05, 2018.

This is even as the nation’s foreign reserves continues to grow with improved confidence in the Nigerian foreign exchange market and its management, the Nigerian Autonomous Foreign Exchange (NAFEX) window, has contributed to this development with not less than $31.66 billion in the last 10 months of its creation.

The aoex bsnk apex Bank of Nigeria (CBN) opened the NAFEX, otherwise known as Investors and Exporters FX (I&E) window last year April, and has been contributing to the confidence in the Nigerian economy, foreign exchange management and policies.

It is worthy of note that I&E FX window, recorded highest transactions turnover $6.1billion in the first month of 2018.

Read Also: Forex: Banks ordered to halt commission charges, harmonise FX rate at N360/$1

But while considering its contribution in the first month of it creation April 2017, data obtained from the from FMDQ OTC Securities Exchange showed that $0.61 billion transactions turnover was recorded in April but increased significantly by 114 per cent to $1.32 billion in May.

The Daily Times further checks revealed that the figure declared in June moved up to $1.63 billion and increased further in July to $1.86 billion and $3.54 billion in August 2017.

The I&E FX window, however, traded second highest turnover of $4.61 billion in September since establishment, but depreciated to $4.30 billion in October.

In November, the autonomous forex window, declared total transactions worth of $4.51 billion, while the year 2017 closed with traded turnover of $3.27 billion.

On the other hand, the NAFEX in January 2018, recorded total traded turnover of $6.1billion, the highest transactions ever recorded since the automouse forex window was opened in 2017.

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