Naira rebounds at official FX market

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By: ADEBISI ADEMOLA

Following the fall of  Naira to N307 per  Dollar on Monday, the Nigeria’s local currency, rebounded slightly to close at N306.85, as at close of yesterday trading activities, while the local currency extended its gaining streak against the Euro to close at a stronger rate of N425 at the parallel market

Before now, the Central Bank of Nigeria (CBN) kept the naira stable at N305 and provided foreign exchange for various sectors of the economy to ease the pressure on the naira.

However, the Autonomous Foreign Exchange (NAFEX) window, on Tuesday recorded total transaction turnover of $195.63 million compared to $114.07 million declared on the first trading day of the week.

Although, the autonomous FX window, traded weak at N360.50 to the dollar against N360.32, even though it was better than N360.63 exchanged last Friday, however, recorded an appreciated opening rate of N359.35 against N359.85 declared the previous day.

At the parallel segment of the forex market, the naira, sustained Monday rebounded rate of N363 to the Dollar compared to N364 sold a week ago, as well as unchanged rate N480 to Pound Sterling, but gained more points to close at N425 to the Euro, which was stronger than N428 on Tuesday and N430 sold on the corresponding period last week.

It is however, worthy of note that presently, there are at least five exchange rates in the country: the official CBN rate, BTA rate stipulated by CBN for banks, parallel market rate, investors and exporters’ window and the interbank rate.

On the international market, the naira exchanged at N359 to a dollar and traded at N362 at the parallel market.

But the apex bank, had assured Nigerians that the bank would work towards achieving convergence across the various FX markets.

It would be recalled that in a bid to ease pressure on the naira, the central bank drected banks to open a section to provide forex for basic travel allowance, medical tourism and tuition.

The apex lender, also, opened an investors and exporters window, otherwise known as NAFEX to provide forex for businesses and ease the pressure on the local currency.
Meanwhile, forex dealers believed that the new closing rate of the local currency at the official forex market could signal a gradual move to exchange rates convergence.

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