Naira extends gains over euro as I&E FX window declares $165.83m turnover

The Nigerian currency, Naira, on Thursday extended its gain over the Euro to close at 420 against the appreciated rate of 423 traded on Wednesday and 425 exchanged on Tuesday, as well as the Investor & Exporter FX(I&E) window, has declared an appreciated transactions turnover of $165.83 million, compared to $72 million recorded the previous day.

At the end of yesterday trading activities on the unofficial forex market, the Naira, stood steadied 363 against the US Dollar, the same figure traded on Wednesday and seen at 475 to the Pound Sterling, only the Euro rebounded on third trading day and strengthened further on Thursday.

On the other hand, the Naira at the official forex market, declined further to close at 305.85 against 305.80 sold on Wednesday and 305.75 exchanged a week ago. At the I&E FX window, also, known as NAFEX, opened at 359.91 to the dollar which was weaker than 359.79 but rebounded on to close at an improved rate of 360.40 against 360.80, but the same rate it closed last week.

Although, the apex bank has continued to intervene in the official forex market, with injection of total sum of $195 million within the week to meet demand for dollars as it continues its efforts to improve liquidity and reduce shortages.

However, forex dealers have projected that in the week ahead, the local currency is expected to remain stable across its multiple exchange rates next week as the central bank continues to intervene with dollar sales on the official market to support the currency.

The local unit has been hovering at around 360 naira for investors, the same level as the parallel market. On the official market, the naira has been quoted at around 305 per dollar for more than three months. The central bank injected $195 million on Tuesday and sold treasury bills to keep liquidity tight. Nigerian lawmakers on Wednesday proposed a draft bill that could ease dollar shortages.

Meanwhile, a draft law to ease a dollar shortage by restricting movement of hard currency in and out of Nigeria passed its second parliamentary reading on Wednesday. A dearth of dollars since crude prices slumped in 2014, slashing government revenues, prompted a recession in 2016 that Africa’s largest economy exited in the second quarter of this year.