Nigeria naira firms against major currencies, makes marginal gains at parallel market

The Nigerian naira Monday gained 0.55 percent to exchange at N365/$ at the parallel market as Central Bank of Nigeria (CBN) continued in its efforts to stabilise the foreign exchange market.

The currency closed flat against the pound sterling and euro at N465 and N410 on the same market spot respectively.

At the official market, the naira appreciated by 0.02 per cent to close at N305.95 per dollar, while the Investors and Exporters Forex Window depreciated by 2.03 percent to hit N359 against the United States dollar, according to data gathered from the FMDQ OTC portal.

The development confirms Businessamlive earlier prognosis that the naira would firm against major currencies Monday following indications that the Central Bank of Nigeria would intervene in the market with $100 million special currency auction.

The outlook for the naira has remained positive since the CBN continued to intervene in the market. Last week the apex bank intervened in the foreign exchange market with $195 million, including a $100 million special currency auction.

Authorised dealers in the wholesale segment received a 100 million dollar offer from the CBN while the small and medium enterprises as well as invisibles windows received $50 million and $45 million, respectively.

The naira was quoted flat at N368 on the black market early on Monday and quoted N306.40 per dollar by commercial lenders at the interbank window. As at close of business last week, the naira was at N366.41 on the investors’ and exporters’ window.

Aminu Gwadade, president of the Association of Bureaux De Change of Nigeria, last month advised the CBN to review BDCs dollar buying rate downwards from N360 to N350/$1 and enhance security surveillance at the borders to checkmate illegal cash movement that has dire consequences on naira’s stability.