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Naira drops points against Dollar, Pound at parallel market

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Speculative attacks fuel Naira depreciation
The Nigerian currency, Naira, on Monday shed slight points against the three major foreign currencies, Dollar, Pound and the Euro at the parallel segment of the foreign exchange market. The local currency, however, remained low at the official forex market and fell slightly at the Nigeria Autonomous Foreign Exchange Fixing (NAFEX) window.
 
 The naira, was seen at the unofficial forex market at 370 to the dollar against 369 sold over the weekend, while decline by three points against the pound to close at 478 compared to 475, as well as dropping a point to the Euro at 433 against 432 traded during the weekend.
 
 At the NAFEX window, the Nigerian currency dropped very slightly to record a weaker closing rate of 359.58, as against 359.56 ended on the last trading of last week. It however, opened trading activity earlier in the day at 361.13 against Friday better rate of 360.63 to the dollar, data obtained at FMDQ OTC has showed.
 
 But the daily turnover at the autonomous FX window at close of yesterday trading, retained the improved figure of $213.21 million ofFriday, while compared to $146.09 million traded on Thursday, as well higher than Wednesday $100.29 million, Tuesday $165.29 million and stronger than $212.43 million recorded a week ago.
 
 Similarly, the naira, at the close of official forex market trading on Monday retained the depreciated rate of 305.80 per dollar sold on Friday, compared to 305.65 and 305.70 traded most part of last week.
 
Meanwhile, the money market rates moderated a day before the market closed for last week trading, after the state disbursed N224.54 billion ($715.10m) in budget allocations to its three tiers of government, boosting liquidity.
 
The bank, also repaid around N95.7 billion in matured treasury bills, to boost liquidity, as well sold around N26.90 billion at an open market treasury auction on Friday to soak up naira liquidity. Traders said the money market remained liquid despite the auction. Although, trader expected rates to rise up to 30 per cent this week as the central bank issues more securities to mop up part of government disbursement from the banking system.
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