Naira Enjoys More Stability as Speculation Wanes

Proshare - Facebook Proshare - Twitter Proshare - Linked In Proshare - WhatsApp

Friday, December 16, 2016 5.42 PM / TheAnalyst 

Today, Naira comfortably maintained stable outlook in both markets to close flat against the dollar. It settled at N305.00 and N399.00 at Interbank and Parallel Markets respectively as trading data indicate.

Analysis reveals that the Naira sustained a stable trading pattern in both markets to close flat at the end of the week.  Further analysis revealed low price volatility amid a sustained price recovery pattern, similar to trading pattern recorded in the previous week as Naira maintained calm outlook in both markets.

The sustained sale of Dollar to the BDCs and the stiff measures towards road-side currency traders had played significant role in achieving the stability observed, particularly in the parallel markets.

However, speculative tendency and scarcity of FX remain the driving factors depressing the value of Naira.

Furthermore, Nigerian currency still maintained its support level at N304.00 at interbank market while Naira maintained support level at N399.00 at parallel market as trading pattern in both markets indicate.

In addition, post-flexible FX regime analysis revealed that Naira had lost 8.21% and 15.65% in value at interbank and parallel markets respectively as at the end of trading session today. The spread between the interbank and parallel market rates moderated at 30.82% as against 30.61% recorded in previous week.

Related News
1.       FT - Lenders Plan Not To Renew Deals with CBN

2.      Naira and Dollar Sustain Stable Outlook Amid Speculation

3.       Naira still holds ground against dollar in both markets

4.      Naira sustains stable outlook against dollar in both markets

5.      Naira enjoys modest stability against dollar in both markets

6.      Naira adds extra value on steep fall at parallel market

7.      Naira firms up in parallel market, remains weak in interbank

8.       Naira finds support level at N304.00 in interbank market

9.      Naira holds ground against Dollar in both markets

10.  Bid/Ask spreads shrink as Naira sustains value in parallel market  

11.   Naira posts 1.56% gain WoW in Interbank, firms at N473 in parallel market

12.   Scarcity Hits Parallel Market Due to High FX Demand

13.  Central Bank of Nigeria Foreign Exchange Transactions Restriction on Firstbank

14.  The 2nd OTC FX Futures contract with notional amount $152.48mm at $/N310,matured and settled on FMDQ

15.   Banks assure customers, meets with CBN over FX ban; as UBA is readmitted

16.  United Bank for Africa (UBA) re-admitted into FOREX Market

17.   CBN Directs Authorised Dealers to Dedicate 60% of FX Purchases to End Users

18.  CBN Issues Additional Requirements on Sales of Foreign Currency Proceeds of IMT to BDCs

19.  Sales of Foreign Currency Proceeds of International Money Transfers to BDC Operators

20. The Nigerian Forex Situation

21.  First Naira-Settled OTC FX Futures Contract Matured and Settled July 27 on FMDQ

22. New FX Market in Need of Additional Supply

23. Provisioning For Foreign Currency Loans 

Related News