Stocks rise, naira gains as CBN gets more buffer for defence

Nigeria’s equities market rose further during mid-day trading on Friday by +0.18 percent, even as the naira was seen stabilising at the unofficial FX market.

The CBN’s report of $1.41billion inflow for the month of June alone signals the apex Bank’s increased buffer capable of stabilising current volatility in the unofficial segment of the FX market.

While the NGX All-Share Index appreciated to 65,319.92 points, the pressure at the unofficial FX market moderated on Friday.

“The stock market has continued to record positive gains on the back of the recent FX liberalisation policy,” said Lagos-based analysts at Coronation Research.

Read also: CBN fritters N507bn on ‘national security’ despite rising insecurities

The Nigerian currency traded at N945 to a U.S. dollar as at 12.37pm on Friday, as againts N955 it traded on Thursday according to data captured from AbokiFX, an online application platform that provides daily updates and information on the parallel market.

The Central Bank of Nigeria (CBN) had blamed ongoing decline in the value of the Naira against the dollar on current unofficial remittances from the diaspora.

The CBN is optimistic about a turn-around in the FX situation in the country, as it reported an inflow of $1.41 billion for the month of June only, a figure that most likely would have risen in the month of July following savings from the expensive fuel subsidy removal and increased crude oil exports.