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Naira gains 0.02% at official forex market

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Naira weakens marginally against dollar at parallel market
The Nigerian currency, Naira, on Thursday recorded a total gain of 0.02 per cent of 305.85 against 305.90 sold on Wednesday,Tuesday and 305.95 exchanged on Monday at the official foreign exchange market.
 
The local currency, however, rebounded slightly against the Pound sterling to close at  487, compared to 488 traded on Wednesday, however, remained stabled at 367 to the dollar at the parallel segment of the foreign exchange market.
 
 The Naira, also, seen at 436 to the euro as at close of yesterday trading activities, the same rate it had sold on Wednesday andTuesday but stronger than 437 exchanged on Monday.
 The Africa’s largest economy legal tender, had fell by three points against the pound on Wednesday, rebounded on Thursday by a point from 488 to 487 at the parallel market.
 
But fell further at the Importer &Exporters FX window on Thursday, closing at 360.67 from 360.22 ended on Wednesday and 359.06 traded on Tuesday, but opened at a better rate of 359.63 against 359.71 on Wednesday and 359.9 on Tuesday.
 
The Naira, however, recorded significant gains at the end of Thursday trading with a daily turnover of $186.37 million compared to $102.75 million traded on Wednesday and $125 million on Tuesday and also, stronger than $131.84 million closed on Monday.
 
Meanwhile, the offshore funds in Nigeria offered on Wednesday to sell the dollar at close to its black market rate, traders said, worsening a liquidity lull on the foreign exchange market.
 The funds, which shifted dollars into the market last week to buy naira treasury bills, offered to sell the U.S. currency at 365 naira, close to the black market rate of 367. Local banks were bidding to buy at just 359.
 
 Domestic buyers said they were expecting the local currency to firm as foreign funds piled into cheap naira assets. In April, the central bank allowed investors to trade the naira at rates determined by the market. The move was intended to improve dollar supply, but it introduced a new exchange rate on top of the five already gumming up Nigeria’s currency system.
 
Foreign investors sold dollars last week to participate at a treasury bill auction on Wednesday, leading to the debt being oversubscribed. International investors were now waiting to see where currency rates would settle after the auction, traders said.
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