Market News

The naira weakened further on the official market yesterday, closing at N1,500.79 per dollar compared to N1,490.20/$1 on Monday, data from FMDQ shows. According to forex traders, the local currency also weakened on the parallel market yesterday, dropping to N1,505 per dollar compared to N1,495/$1 on Monday.

Yesterday, Bloomberg reported Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, as saying that the apex bank is “relatively pleased” with the progress it has made in stabilising the naira and believes the excessive volatility may be a thing of the past. The news agency quoted to have stated: “I do believe that we have more or less seen the worst in terms of volatility.

We are also very alive to observing the way and manner in which that market operates and ensuring that it gives the best value that that can be accomplished using certain tools.” Analysts note that the naira has in recent weeks stabilised at slightly below N1,500 per dollar in the foreign exchange markets, occasioned by CBN’s interventions.

In its latest economic outlook released on Monday, professional services firm, PricewaterhouseCoopers (PwC Nigeria) Nigeria stated: “Interventions by CBN may cause the naira to stabilise in the long-term. However, these interventions may become subdued in the absence of improved capital flows and export proceeds to the foreign reserves.”