Naira Still Holds Ground Against the Dollar in Both Markets

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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.

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