Naira and Dollar Sustain Stable Outlook Amid Speculation

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Friday, December 09, 2016 5.50 PM / TheAnalyst 

Today, Naira maintained stable outlook in both markets to close flat against the Dollar. It closed at N305.00 and N399.00 at Interbank and Parallel Market respectively.

According to analysis, Naira held ground against the Dollar in both markets to close flat at the end of week.  Further analysis revealed a sustained price recovery and stable trading pattern, similar to trading pattern recorded in the previous week as Naira maintained stable outlook in both markets during the week.

The sustained sale of Dollar to the BDCs and the clamp-down on road-side currency traders had played significant role in stability observed in both markets. However, speculative tendency and scarcity of FX remain the driving factors depressing the value of the Naira.

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

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 end of trading session today. The spread between the interbank and parallel market rates moderated at 30.61% as against 30.82% recorded in previous week.

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