The naira yesterday appreciated in value against the dollar at the interbank foreign exchange (FX), while closing stable at the autonomous and parallel market, BusinesDay findings show.
The naira gained N0.31k or 0.16 percent against the dollar, closing at N199.06k/$ on Thursday, compared with N199.37k/$ the previous day, according to data from FMDQ.
The local currency closed stable at N315/$, in some areas N310/$, and at the autonomous market and parallel market N320/$.
Also, the CBN’s clearing rate at the interbank market yesterday remained unchanged at N197/$, data from FMDQ indicated.
Tajudeen Ibrahim, analyst at Chapel Hill Denham, told BusinessDay in an emailed response that increased FX supply was crucial for the USD/NGN to moderate towards 200 at the parallel market.
“We also believe foreign portfolio and direct investments should be attracted via the appropriate monetary and fiscal policies. Notably, capital importation to Nigeria dropped by 54 percent yoy to $9.64 billion in 2015, driven largely by foreign portfolio investment, which fell by 60 percent yoy to $6 billion in 2015.
“However, Nigerian naira is expected to remain under pressure on the parallel market next week, but could trade within a band as traders and buyers seek appropriate value for the local currency.
“We have seen some resistance on the part of buyers not willing to pay more for the dollar,” one dealer told Reuters. Traders said dollar supply remains tight but markets will continue to trade within the prevailing band as long as buyers are not willing to pay more for the available dollars.
