Naira Firms On $2.68bn Inflow From CBN, NAFEX - LEADERSHIP
Despite the downward trend of the foreign reserve, naira maintained a strong performance as data collected last week at the foreign exchange market showed that $2.47 billion turnover was recorded at the Nigeria Autonomous Foreign Exchange Market (NAFEX) while the Central Bank of Nigeria (CBN) sustained its weekly intervention of $210 million totally the inflow to $2.68 billion.
According to the data obtained from the official website of the CBN at the close of business on Friday, it showed that the country’s reserve declined to $38.32 billion while the naira appreciated to N306.9 from N306.95 which it was at the start of business on Monday. It however depreciated against the pounds sterling and the euro to trade at N400.93 and N342.53 from N398.05 and N341.38 respectively.
>span class="s2">At the close of transactions at the Investors and Exporters (I&E) window, the naira strengthened to gain N1.24 and traded at N361.84 from N362.60 it exchanged at the start of transactions on Monday. The session opened with $766 million turnover, followed by $300.54m, $263.45m, $747.81m and N392.94million turnover on Friday with trades consummated within N310- N357 band.
At the Bureau De Change (BDCs) segment, the data obtained from the official website of the Association of Bureau De Change Operators of Nigeria (ABCON) showed that at the Lagos end of the market the naira sold at N360.5 from N360.8 the previous week while the pounds sterling sold at N477 from N476.50 and the euro at N400 from N399.
At Abuja end, the domestic currency closed at N360.8/$, N478.5/£and N399€. Likewise, at Port Harcourt market the local currency traded at N360.5/$, N478/£ and N400/€ Meanwhile in Kano the naira traded at N361/$, N475/£ and N400/€.
In the parallel market, the naira remained stable at N362/$, while it appreciated against the pounds sterling and the euro to sell at N477 from N480 and N400 from N402 respectively. The overnight (OVN) rate maintained an uptrend during the week before paring at the tail end of the week to settle at 3.86 per cent.
On the first trading day, the rate expanded by 329 basis points to 14.00 per cent following funding for FX auction held by the CBN. Thereafter, the rate eased marginally by 58 basis points on the second trading day, before then increasing marginally by 75bps to 14.17 per cent on the subsequent trading day on the back of strained liquidity.
However, on the penultimate trading of the week, the rate declined by 9.1ppts to 3.57 percent as the system became awash with OMO and NTB maturities (NGN755.54 billion) which boosted system liquidity.