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Banks sell $584m, Naira weakens at official market

The Naira

According to data posted on the FMDQ exchange on Tuesday, the value of foreign excahnge transaction recorded on the official Nigeria Autonomous Foreign exchange Market has risen to $584m. This occur as a result of the Naira weakness against united state dollar that occurred on official market on Tuesday.

It closed at N1433/dollar, compared to N1419/dollar recorded on Monday.

Meanwhile, the forex turnover increased to $584.53m on Tuesday from $440.13m recorded on Monday indicating an increase of $144.4m or 32.8 per cent.

The improved liquidity is following moves by the Central Bank of Nigeria to stabilise the foreign exchange rate.

However, aside from commercial banks, the Central Bank of Nigeria, oil firms, and multinationals also sell dollars at the Nigerian Autonomous Foreign Exchange Market.

Last week, the apex bank rolled out new circulars and guidelines to boost liquidity and narrow the gap between the parallel and official rates of the foreign exchange market. In its most significant foreign exchange guideline, last week, the CBN ordered banks to adjust their FX exposures.

In response, the national currency gained thrice at the official market following the adjustments.

The naira closed at N1,455.59/$ on Wednesday, 1,445/$ on Thursday, and  N1435.53/$ on Friday last week.

After trading on Tuesday, the naira depreciated marginally by 0.85 per cent as the dollar was quoted at N1,433.89, stronger than N1,421.70 quoted on Monday at the NAFEM market.

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