Bid/Ask spreads stable at interbank FX as Naira holds value

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Friday, December 30, 2016 3.20 pm / TheAnalyst 

Today, Naira continued to enjoy stable trading outlook, holding its key support level at N304.00 against Dollar at the interbank market. It depreciated by 0.08% to settle at N305.00 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 stable trading pattern 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 8.21% 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 gained modest weight to close at 30.82% as against 30.71% recorded in previous week.

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