Naira Holds Ground Against the Dollar at Interbank FX Market

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

Friday, December 23, 2016 3.20 pm / TheAnalyst 

Today, Naira continued to enjoy stable outlook in both markets to hold ground against the Dollar. It maintained a flat position to settle at N305.25 and N399.00 at Interbank FX Market and Parallel Market respectively as trading data had indicated.

According to analysis, Naira depreciated by 0.08% at the interbank FX market to end the week lower on modest note .  Further analysis revealed a sustained price recovery pattern, similar to trading pattern recorded in the previous week as Naira maintained a no price change posture in both markets during the week.

The sustained sale of Dollar to BDCs and the stiff measures towards road-side currency traders had played significant role in achieving the stability observed, particularly in parallel markets. However, speculative tendency and scarcity of FX remain the driving factors depressing the value of Naira.

Furthermore, the 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 had indicated.

In addition, post Flexible FX regime analysis revealed that Naira had lost 8.30% and 15.65% in value at interbank and parallel markets respectively as at end of trading session today. The spread between the interbank and parallel market rates moderated at 30.71% as against 30.82% recorded in previous week.

Related News
1.       Naira and Dollar sustain stable outlook amid speculation

2.      Naira still holds ground against dollar in both markets

3.      Naira sustains stable outlook against dollar in both markets

4.      Naira enjoys modest stability against dollar in both markets

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

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

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

8.     Naira holds ground against Dollar in both markets

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

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

11.    Scarcity Hits Parallel Market Due to High FX Demand

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

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

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

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

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

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

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

19.  The Nigerian Forex Situation

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

21.  New FX Market in Need of Additional Supply

22. Provisioning For Foreign Currency Loans

Related News