Naira closes flat at Interbank, parallel markets

The local currency, naira, traded on a flat note at both the parallel market and interbank market of the Central Bank of Nigeria on Thursday.

While the naira was exchanged at N306.90 to a dollar at the interbank segment of the foreign exchange market, same rate it was sold on Wednesday, the Naira was traded at N360 per dollar at the black market.

However, at the Investors & Exporters Foreign Exchange window, the Naira appreciated by 0.03per cent to N362.48 per dollar against N362.30 per dollar it finished the previous day at the specialised foreign exchange window for investors and exporters.

According to FMDQ OTC securities, a total of $437.39m was traded on the I & EFX window on Thursday.

The FMDQ OTC on Wednesday had disclosed that the total foreign exchange market turnover in September 2019 was $18.12bn or N6.56tn, representing a 29.47per cent or $7.57bn Month-on-Month decrease from August 2019.

The report by the FMDQ market explained that foreign exchange market turnover by trade type indicated MoM decrease across all categories, with Member-CBN trades recording the highest percentage MoM decrease at 47.61per cent or $3.32bn, while Member-Client trades recorded the highest MoM decrease in dollar (nominal) terms, at $4.12bn or 26.77per cent.

Analysis by product type indicated that the MoM decrease in foreign exchange turnover was mainly driven by a 21.20 per cent or $3.04bn and 39.90per cent or $4.53bn MoM decrease in foreign exchange spot and foreign exchange derivatives turnover respectively.

According to the monthly FMDQ report, in September 2019, the CBN Official Spot rate for Naira to dollar remained constant at N307.00 per dollar.

“Similarly, the parallel market rate remained constant at $/N360.00, while the Naira appreciated against the US Dollar at the I&E FX Window by N0.70 per dollar to close at N362.23 per dollar in September 2019,” the report by FMDQ OTC securities explained.

The local currency has been relatively stable at the various market segments since the CBN started intervening in the foreign exchange market by releasing funds to dealers to meet the demands of their customers.

The apex bank has promised to continue to ease the pressure on Naira, warning that it won’t spare the rod on any dealer that tries to frustrate the flow of foreign exchange at the market.

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