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Naira Gains, Holds Stable At Parallel Market

Source: thewillnigeria.com
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BEVERLY HILLS, March 03, (THEWILL) – The naira appreciated in value against the dollar at the interbank foreign exchange (FX), while closing stable at the autonomous and parallel market on Thursday.

The naira gained N0.31k or 0.16 percent against the dollar, closing at N199.06k/$ on Thursday, compared with N199.37k/$ the previous day, according to data from FMDQ.

The local currency also closed stable at N315/$, in some areas N310/$, and at the autonomous market and parallel market N320/$.

Also, the CBN's clearing rate at the interbank market yesterday remained unchanged at N197/$, data from FMDQ indicated.

Analysts believe that the increased FX supply was crucial for the USD/NGN to moderate towards 200 at the parallel market.

“We have seen some resistance on the part of buyers not willing to pay more for the dollar. Traders said dollar supply remains tight but markets will continue

Also, foreign portfolio and direct investments should be attracted via the appropriate monetary and fiscal policies. Notably, capital importation to Nigeria dropped by 54 percent to $9.64 billion in 2015, driven largely by foreign portfolio investment, which fell by 60 percent to $6 billion in 2015.

However, the naira is expected to remain under pressure on the parallel market next week, but could trade within a band as traders and buyers seek appropriate value for the local currency.

Story by David Oputah