Naira trades flat as CBN adjusts rate to N196.98

The naira on Monday traded flat at the autonomous foreign exchange market as the Central Bank of Nigeria (CBN) adjusted its clearing rate at the interbank market to N196.98/$ from N197/$ last week.

Consequently, naira gained slightly by N0.61k or 0.31 percent against the dollar at the interbank market foreign exchange.

After trading on Monday, the local currency closed at N197.75k/$ compared with N198.36k/$ on Friday last week, data from FMDQ have revealed.

At the Bureau de Change (BDC) segment and parallel market, the naira on Monday retained the stability it gained since last week. It closed at N225/$ and N226/$ at the BDC segment and parallel market, respectively.

“Some policies of the CBN are taking shape to stabilise the foreign exchange rates,” Aminu Gwadabe, the acting national president, Association of Bureau De Change Operators of Nigeria (ABCON), told BusinessDay on phone.

He also said that confidence had returned to the market following ministerial lists released by the Federal Government, saying the downward review of the Cash Reserve Requirement (CRR) from 31 percent to 25 percent by the CBN had contributed to the foreign exchange stability.

Godwin Emefiele, CBN governor, said at the last Monetary Policy Committee (MPC) that the average naira exchange rate remained relatively stable at the interbank segment, but significantly volatile in the BDC segment of the foreign exchange market during the review period.

The interbank exchange rate opened at N196.95/$ and closed at N197.00, at a daily average of N196.98/$ between June 29 and September 18, 2015, representing a depreciation of N0.5K for the period.

At the BDC segment, the exchange rate opened at N224.50/$ and closed at N211.50, representing an appreciation of N13 for the period. The relative stability in the interbank market and improvement in the BDC segment were attributed to the effects of various administrative and policy measures.