Friday, November 25, 2016 6.20 pm / TheAnalyst
Today, Naira traded southwards at the interbank FX market against the dollar but closed flat at the parallel market. It depreciated by 0.08% to close at N305.25 but closed flat at N399.00 at Interbank FX Market and Parallel Market respectively.
Analysis reveals that the Naira remained stability against the dollar at parallel markets but shed modest weights at the interbank market at the end of the week. The Nigerian currency depreciated against the Dollar by 0.08% at interbank FX market. It however, closed flat at parallel market as Naira firmed up against the Dollar during the week.
Further analysis revealed a sustained price recovery and stable trading pattern, similar to the trading pattern recorded in the previous week as Naira maintained stable outlook in both markets during the week.
The sustained sale of Dollar to BDCs and the clamp-down on road-side currency traders had played significant role in the 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 the interbank market while Naira maintained new 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 8.30% 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 gained modestly to close at 30.71% as against 30.61% recorded in previous week.