• Tuesday, May 28, 2024
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BusinessDay

Naira firms against dollar on improved forex inflow

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Naira yesterday strengthened against the US dollar gaining 15 kobo at the inter-bank market to close at N157.30/$ compared to N157.45/$ the previous day, data from Nigeria Markets Dealers Association (FMDA) have revealed.

The analysts said naira appreciation was due to intervention by the CBN and inflow from oil companies.

The CBN on Monday offered $300 million but sold $293.8 million to 17 banks that participated at the bi-weekly Wholesale Dutch Auction system (WDAS) at N155.75/$.

However, naira remained stable at the official, bureau de change and parallel markets closing at N155.75/$, N159.5000/$, and N160.0000/$, respectively.

According to Ecobank’s daily market report although the naira has a weakening outlook, the steady rise in reserves to USD48.6 billion (around 7 months equivalent of imports) and CBN’s MPC decision to hold rate unchanged at 12.0 percent would provide a large cushion to support the naira in the weeks ahead.

Money market yesterday experienced liquidity squeeze as the Nigeria Inter-Bank Offered Rates (NIBOR) increased across tenor bucket.