Naira gains N30 against dollar at parallel market, closes week flat at official window

• The naira gained N30 against the dollar at the parallel market
• It closed the week flat at the official window
• The Nigerian Foreign Exchange Market window recorded an inflow of $1.19 billion last week

The naira gained N30 against the dollar in the parallel market at the end of the week’s trading session on Friday, March 28, but closed flat at the official window,

The foreign exchange (FX) market was buoyed by improved liquidity from market participants.

At the parallel market, the naira recorded a 1.9 per cent gain against the dollar after trading on Friday, as it was quoted at N1,550/$ compared to the N1,580/$ it closed at on Friday last week.

However, at the official window, the naira ended the week flat, closing at N1,536.82/$ on Friday as against N1,536.89/$1 it closed on Friday last week at the Nigerian Foreign Exchange Market (NFEM).

The naira depreciated at the official foreign exchange market for three days within the week before closing the week at N1,538.66/$ on Thursday, according to data from the Central Bank of Nigeria (CBN).

Against other currencies in the black market, the naira traded steady at N2,020 per pound, N1,690 per euro, N1,150 per Canadian dollar and N215 per Chinese yuan.

Forex inflows in the week

Data from Coronation Merchant Bank showed that the NFEM window recorded an inflow of $1.19 billion last week compared to $1.10 billion recorded in the prior week.

The CBN accounted for 39.85 per cent of the total inflow last week, Foreign Portfolio Investments (FPIs) accounted for 18.09 per cent, non-bank corporates recorded 23.81 per cent, exporters 15.67 per cent, while other sources accounted for 2.58 per cent. Last week, the CBN accounted for 14.29 per cent of the total FX inflow.

CBN’s efforts to stabilise the FX market

The fluctuations recorded in the FX market in the outgoing week come amid CBN’s efforts to ensure FX stability.

The governor of the CBN, Olayemi Cardoso, has often stressed this at different fora, saying that though Nigeria’s economy faced recent challenges, key indicators are signs of future improvements.

He stated that ongoing reforms by the CBN, including its tight monetary stance and streamlining the FX market, are beginning to reflect greater stability in the FX market and a gradual moderation in inflationary pressures.

Naira loses 1.25% week-on-week at official window, settles at N1,536/$

Meanwhile, TheRadar earlier reported that the naira lost 1.25 per cent of its value week-on-week in the past week to settle at 1536.89/$ at the official window on Friday, March 21.

The Central Bank of Nigeria (CBN) data showed that the naira started the past week on a weak note at 1,528.03/$, down from 1,517.93/$ in the previous trading session.