Naira enjoys modest stability against the dollar in both markets

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Friday, November 18, 2016 3.20 pm / TheAnalyst 

Today, Naira traded flat in both markets to hold its ground firm against the Dollar. It closed at N305.50 and N399.00 at Interbank FX Market and Parallel Market respectively.

As analysis reveals, Naira recorded modest stability against the dollar at the parallel markets but shed weights at interbank market at the end of week.  The Nigerian currency depreciated against the Dollar by 0.25% at interbank FX market. It however, closed flat at parallel market as Naira firmed up against the Dollar for the week.

Further analysis revealed a sustained price recovery pattern when compared with trading pattern recorded in previous week as Naira maintained stable outlook in both markets during the week.

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

Furthermore, the Nigerian currency maintained its support level at N304.00 at interbank market while Naira maintained new 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 8.39% 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 contracted by 30.61% as against 30.93% recorded in previous week.

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