Naira Appreciates Across Forex Market

Forex Weekly Outlook October 10-14
  • Naira Appreciates Across Forex Market

The Naira gained across all the foreign exchange segments on Monday following the additional sales of $170 million by the Central Bank of Nigeria (CBN) last week.

The local currency improved three points on the parallel market to exchange at N452, from N455 posted on Friday, while the Pound Sterling and the Euro closed at N550 and 476, respectively.

At the Bureau De Change window, the Naira was sold at N399 to a dollar, CBN stipulated rate, while the Pound Sterling and the Euro traded at N547 and N482, respectively.

On the interbank market window, the Nair closed at N306 to a US dollar.Trading on the floor of the interbank market saw the Naira closed at N306.00 to a dollar.

Traders at the market expressed delight in the interventions the CBN had made so far in boosting liquidity, adding that its sustenance would turn the economy around in the short to medium term.

Meanwhile, Alhaji Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria, said the association was expecting an increment in dollar sales to its members this week.

Gwadabe said that due to the stability in the oil sector and the increase in the price of oil at the international market, the CBN was now comfortable in entertaining ABCON’s request to increase the volume of dollar sales to its members.

The ABCON boss said that a boost in its weekly volume from 8,000 dollars weekly to 15,000 dollars would sustain the existing efforts in stabilising the Naira exchange rate at the FOREX market.

“We expect that the CBN will increase the weekly dollar sales to about 3200 registered BDC’s nationwide this week.

“This development will help to crash the high exchange rate at the parallel market, thereby stabilising the market that segment of the market.

“The CBN is also collaborating with ABCON to reduce the hiccups encountered by ABCON members in filling their returns to the apex bank,’’ Gwadabe said.

The financial expert added that the Naira was expected to extend appreciation across the major segments of the FOREX market this week.

Since the CBN began intervening in the FOREX market, it had spent an excess of $1.4bn in boosting liquidity at the market.

Some concerned Nigerians have hailed the effort of the CBN in boosting liquidity at the FOREX market, but added that the liquidity boost had not yet translated to the reduction in the price of goods and services in the country.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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