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Naira Enjoys More Stability as Speculation Wanes

Forex
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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.

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