Naira holds ground in Parallel market, slips to N311.62 in Interbank

Proshare - Facebook Proshare - Twitter Proshare - Linked In Proshare - WhatsApp

Friday, September 30, 2016 3.20 pm / TheAnalyst 

On September 30, 2016, the Naira gained against the dollar in the parallel FX market by 3.86% to close at N473.00, but slipped further at the interbank FX Market by 2.07% to close at N311.62. In the current week, Naira depreciated in value by 1.05% and 6.29% against 0.18% and 4.25% in both interbank FX and parallel markets, respectively.

Speculation and scarcity of FX in the market remain major reasons depressing the value of Naira to a new low of N492 against a Dollar in the week as post floating analysis had reflected.

Post Flexible FX regime analysis reveals that the Naira has lost 10.56% in value at the interbank FX Market, while the trading gap or spread between the interbank and parallel market has widened further by 51.79%, as the Dollar appreciated significantly against the Naira by 37.10% in the Parallel market with CAGR of 0.46% in the last 70days

A cursory analysis using CAGR 0.46% puts the value of Naira above N800.00 against a Dollar before end of year if the factors that drive current scarcity and speculation remain unchanged.

Related News
Scarcity Hits Parallel Market Due to High FX Demand

2.      Central Bank of Nigeria Foreign Exchange Transactions Restriction on Firstbank

3.    The 2nd OTC FX Futures contract with notional amount $152.48mm at $/N310,matured and settled on FMDQ

4.      Banks assure customers, meets with CBN over FX ban; as UBA is readmitted

5.      United Bank for Africa (UBA) re-admitted into FOREX Market

6.      CBN Directs Authorised Dealers to Dedicate 60% of FX Purchases to End Users

7.     CBN Issues Additional Requirements on Sales of Foreign Currency Proceeds of IMT to BDCs

8.     Sales of Foreign Currency Proceeds of International Money Transfers to BDC Operators

9.      The Nigerian Forex Situation

10.  First Naira-Settled OTC FX Futures Contract Matured and Settled July 27 on FMDQ

11.   New FX Market in Need of Additional Supply

12.  Provisioning For Foreign Currency Loans  

Related News