Market Consistency: Naira Records Unchanged Closure In Both Parallel And Official Sectors

The naira closes flat against the dollar on Friday at the parallel and official markets. It closed trading at N902.45/$ on the official Investor and Exporter window of the foreign exchange market and at N1350/$ in the parallel market…..CONTINUE READING

On Friday, the naira remained a little above N902 against the dollar closing at N902.45/$, a little above the N902.08/$ it closed on Thursday according to data from the FMDQ Securities Exchange.

It opened trading on Friday at N909.90/$, traded at a high of N1,280/$ and a low of N467/$ before closing at N902.45/$. Total forex turnover in the official window fell by 17.36 per cent to $145.89m.

In the parallel market, the national currency hovered around N1,300/$, a rate that has been obtainable since Tuesday. Bureau de Change Operators who spoke to The PUNCH mentioned that there are concerns about the naira rising above N1,300/$ as it might affect their business.

A Bureau De Change operator, Magaji Mohammed, told Saturday PUNCH, “I can sell a dollar to you for N1,350 to a dollar, but I’m to buy from you, the rate is N1,340 to a dollar.”

Another operator, Abubakar Taura added, “I buy a dollar at 1,350 and sell for N1,360 to a dollar. But the price differs according to denomination. A $20 bill differs in price compared to a $100 bill.”

On Binance’s peer-to-peer market, the naira hovered remained above N1,330/$. Nigeria is a large crypto market, and according to Chainalysis, a blockchain firm, the country has one of the largest peer-to-peer exchange volumes in the world.

The naira’s high rate persists despite moves by the Central Bank of Nigeria to clear backlogs of its forward contract obligations and a liquidity boost from a $2.25bn foreign exchange support facility from the African Import-Export Bank.

Commenting on the CBN’s commitment to clearing the backlogs, the bank’s Acting Director of Communication, Mrs. Sidi Ali, said, “These payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, to alleviate the current pressure on the country’s exchange rate.

“It is anticipated that this initiative by the CBN should provide a considerable boost to the Naira hug against other major world currencies and further increase investor confidence in the Nigeria economy.”

The National President, Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, recently noted that the $2.2bn released by the African Import-Export Bank was not enough to stimulate the market.