Nigeria’s currency appreciates to 363/$1 at parallel market

The Naira, on Thursday strengthened by one point to close at 363 to the dollar against 364 exchanged on Wednesday at the parallel market.

The local currency, has recorded N2 gains between Tuesday and Thursday, after closing at 365 on the first trading of the week at the unofficial market.

It however, remained unchanged at 473 and 422 to the pound and Euro, respectively at the parallel market.

The Naira at the official forex market, also ended yesterday trading at 305.60 per US Dollar, the same rate it has been trading since Tuesday, representing 0.02 per cent gain, compared to 305.65 sold on Monday.

At the Investor & Exporter FX widow, the naira opened on Thursday at 366.71 indicating 0.16 per cent appreciation, compared to opening rate of 367.28 on Wednesday, even though it closed at a depreciated rate of 368.50, showing a decline of 0.52 per cent against 366.59 closed the previous day.

But the naira, recorded appreciable daily turnover of  $101 million against $712.03 settled on Wednesday and $83.98 million traded the preceding day, data obtained from the FMDQ OTC has revealed.

It would be recalled that the naira on Wednesday consolidated on the gains recorded at the various segments of the foreign exchange (Forex) markets, leading gradually to a convergence of rates between licensed Bureau De Change Operators and parallel market.

Although, according to forex dealers, depreciation of the naira at the I&E window is expected to persist this week, with the indicative exchange rate hitting the N370 per dollar mark, after dropped to 368.50 to the dollar against 362 traded last week.

Meanwhile, the Central Bank of Nigeria (CBN) stepped up its intervention in the foreign exchange market last Friday, selling $462 million in the interbank segment.

The CBN management, had also encouraged by growth in the non-oil sector, particularly agriculture, while noting that the apex bank would not relent in its efforts at sustaining stability in the inter-bank forex market as well as ensuring the convergence between the exchange rates at the Nigeria Autonomous Foreign Exchange (NAFEX) and the Bureau de Change segments of the market.