Naira extends gain at official forex market, others

The Nigerian currency, Naira, on Thursday extended its gains at the Nigerian interbank foreign exchange market and the parallel segment, as the Central Bank of Nigeria (CBN) continuously ensuring availability of liquidity in the forex market.

The naira, at the official interbank forex market appreciated further with the closing rate of 305.65 against 305.70 traded the preceding day, 305.75 recorded on Tuesday and 305.80 exchanged a week ago.

Looking at the yesterday trading at the parallel market, the naira, as at close of trading stood at 363 compared to 364 declared a day earlier and 365 sold during the holiday on Monday.

However, remained steadied at 480 and 421to the Pound sterling and Euro, respectively, the same rate it traded on Wednesday but stronger than 485 and 430 sold last Thursday at the unofficial forex market.

Although, the local currency, at the Nigeria Autonomous Foreign Exchange (NAFEX) window opened yesterday transaction at a depreciated rate of 359.65 weaker than 359.40 on Wednesday and also dropped to close at 360.33 against 360.07, weaker than 360.40 exchanged the preceding day and 360.00 sold last Thursday.

But the autonomous forex window declared an appreciable daily turnover of $367.44 million compared to $257.56 recorded the previous day, better than $340.07 million traded on Tuesday and $299.94 million declared in the corresponding period a week ago.

Consequently, the central bank in continuation of its efforts in sustaining the forex market within the week lifted the inter-bank Forex market with the sum of $195million.

Newsverge, however, observed that the local currency, the following day appreciated by 0.02 per cent at the official market to close at 305.70 to the dollar, compared to 305.75 traded on the intervention day.

Figures released by the Bank show that it offered the total sum of $100 million to the wholesale segment, while the Small and Medium Enterprises (SMEs) segment received the sum of $50 million.

The invisibles segment, comprising tuition fees, medical payments and Basic Travel Allowance (BTA), among others, received $45 million.

Mr. Isaac Okorafor, Acting Director, Corporate Communications Department at the Bank, while confirming the figures, said the CBN was pleased with the state of the Forex market, adding that the Bank will continue to intervene in order to sustain the liquidity in the market and guarantee the international value of the naira.

Okorafor reiterated the apex Bank’s determination to sustain the provision of foreign exchange with a view to ensuring liquidity in the market and enhance accessibility and affordability for genuine end users.

According to him, the Bank will continue to achieve its objective of rates convergence, hence the unrelenting injection of intervention funds into the foreign exchange market.

It would be recalled that the apex bank last week intervened in the various segments of the Forex market with the sum of $698.5 million.