Friday, December 02, 2016 5.20 PM / TheAnalyst
Today, Naira experienced modest stability in both markets to close flat against the Dollar. It closed at N305.00 and N399.00 at the Interbank and Parallel Markets respectively.
Analysis reveals that the Naira sustained stable pattern against the dollar at the parallel market but gained modest weight at the interbank market at the end of the week. The Nigerian currency appreciated against the Dollar by 0.08% at the interbank FX market. It however, closed flat at the parallel market as Naira firmed up against the Dollar for the 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 maintained its support level at N304.00 at the interbank market while Naira maintained 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 the interbank and parallel markets respectively as at the end of trading session today. The spread between the interbank and parallel market rates moved up modestly to close at 30.82% as against 30.71% recorded in previous week.
Related News
1. Naira sustains stable outlook against dollar in both markets
2. Naira enjoys modest stability against dollar in both markets
3. Naira adds extra value on steep fall at parallel market
4. Naira firms up in parallel market, remains weak in interbank
5. Naira finds support level at N304.00 in interbank market
6. Naira holds ground against Dollar in both markets
7. Bid/Ask spreads shrink as Naira sustains value in parallel market
8. Naira posts 1.56% gain WoW in Interbank, firms at N473 in parallel market
9. Scarcity Hits Parallel Market Due to High FX Demand
10. Central Bank of Nigeria Foreign Exchange Transactions Restriction on Firstbank
11. The 2nd OTC FX Futures contract with notional amount $152.48mm at $/N310,matured and settled on FMDQ
12. Banks assure customers, meets with CBN over FX ban; as UBA is readmitted
13. United Bank for Africa (UBA) re-admitted into FOREX Market
14. CBN Directs Authorised Dealers to Dedicate 60% of FX Purchases to End Users
15. CBN Issues Additional Requirements on Sales of Foreign Currency Proceeds of IMT to BDCs
16. Sales of Foreign Currency Proceeds of International Money Transfers to BDC Operators
17. The Nigerian Forex Situation
18. First Naira-Settled OTC FX Futures Contract Matured and Settled July 27 on FMDQ
19. New FX Market in Need of Additional Supply
20. Provisioning For Foreign Currency Loans