Naira slacks 1% on third day at investors’ FX window

 

The value of Nigeria’s naira for portfolio investors weakened 0.95 percent on Wednesday compared with yesterday’s closing price, and has also weakened for the second straight day compared with the interbank rate, despite the central bank supplying $25 million to boost liquidity.

The naira was quoted at N378.54 to the dollar on the new foreign exchange trading window as at 12 pm on Wednesday, data from market regulator, FMDQ OTC Securities Exchange showed.

It closed at 374.96 naira at its previous session, 0.36 percent stronger than N377/$ on Monday. On the main inter-bank market the currency was quoted at 305.90 naira and 388 naira on the black market on Wednesday.

Nigeria’s central bank opened a foreign-exchange window for investors and exporters Monday where the naira trades between the interbank rate and the black-market rate, which many Nigerians use to access dollars. In the weeks before the opening, Governor Godwin Emefiele told senior bankers that he would tolerate a weaker naira and allow the market to determine the rate within the new window, according to a person who attended the meetings.

Stocks have since jumped, partly seen as an initial endorsement of the new foreign exchange window although the apex bank will be required to show it has the patience to allow the market to operate freely, traders say.

The All Share index gained 0.30 percent to 25,896.77 as at 12 pm on Wednesday, according to the Nigerian Stock Exchange.

LOLADE AKINMURELE