Investor window records $48.73m turnover

The foreign exchange market on Wednesday recorded a daily turnover of $48.73 million at the investors and exporters window, showing a decrease of 24.73 percent from $64.74 million recorded on Monday.
At the same window, the nation’s currency depreciated by N4.03k to close at N367.60k on Wednesday from N363.57k quoted the previous day, data from the FMDQ revealed.
The local currency on Wednesday traded at between N365 and N366 per dollar, the same level since over two weeks at the black market.
The Central Bank official naira exchange rate at the inter-bank spot market, which jumped to N315 per dollar on Tuesday dropped to N305.35k on Wednesday. This represents a loss of N9.65k or 3.06 percent against the US dollar.
At the Nigerian Foreign Exchange Fixing (NiFEX), naira was quoted at rate of N325.00k per dollar. Analysts said on Tuesday night that the official rates jumping to N315, if sustained show tactical depreciation of naira by the CBN.
Ayodeji Ebo, managing director, Afrinvest Securities limited, said if this development will be sustained, it would show greater confidence in the market as foreign investors are waiting for the convergence of the exchange rates at the NiFEX and investors and exporters window.
“With the CBN official rate at N315, NiFEX will also be forced to depreciate. As it progresses, we will see how rates will converge at NiFEX with less intervention from the CBN”, Ebo told BusinessDay by phone.
The nation’s currency on Tuesday weakened across foreign exchange market segment. At the investors and exporters window, naira fell by N1.36k against the US dollar closing at N363.57k compared to N362.21k traded the previous day.
The local currency also weakened by about N1.00k to close at the rate of N367 per dollar on Tuesday as against N366 per dollar traded the previous day at the black market.
The CBN on Monday enhanced liquidity in the inter-bank foreign exchange market to the tune of $195 million supply.
Figures released by the Bank show that it offered the total sum of $100million to the wholesale segment, while the Small and Medium Enterprises (SMEs) segment received the sum of $50 million. The invisibles segment, comprising tuition fees, medical payments and Basic Travel Allowance (BTA), among others, received $45 million.
Confirming the figures obtained, Isaac Okorafor, CBN acting director at the Bank said the CBN was pleased with the state of the Forex market, adding that the Bank will continue to intervene in order to sustain the liquidity in the market and guarantee the international value of the naira.

 

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