Nigerian Naira In Mixed Performance
The naira depreciated at the parallel market but held on steadily at the official windows. Naira depreciated by N5 to close weekend at N445 per dollar at the parallel market.
Naira, meanwhile, was steady at N386 per dollar at the official Investors and Exporters (I & E) window. The momentum of activities at the I & E window increased during the week, rising by 11.7 per cent to $240.8 million at the weekend compared with $215.6 million recorded in the previous week.
Central Bank of Nigeria (CBN)’s spot rate also remained flat at N379.00 per dollar. Nigeria’s foreign exchange (forex) reserves rose by $76.42 million to $35.78 billion at the weekend.
Trading reports indicated that total value of open contracts at the FMDQ Securities Exchange FX Futures Contract Market increased by 0.5 per cent or $62.9 million to $12.52 billion. The three-month forwards contract appreciated by 0.1 per cent at N388.30 per dollar while the six-month and one-year contracts appreciated by 0.2 per cent and 0.5 per cent to N391.02 per dollar and N400.38 per dollar respectively.
Nigeria’s private sector think tank, Nigerian Economic Summit Group (NESG) last week criticised CBN’s foreign exchange management, decrying what it described as lack of clarity in the apex bank’s approach.
“The group expresses serious concerns about how the CBN has carried on the business of foreign exchange transactions, loan disbursements (intervention funds) and price fixings without appropriate policy clarity. This can be subject to abuses, manipulations and significant market disruptions, reflective of a policy akin to crony capitalism. We therefore respectfully request the appropriate authorities to properly review this policy to restore credibility into our financial sector,” NESG stated.