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Tuesday, 1 August 2017

Naira shakes off Monday's loss strongly on first day of August. Gains significantly against the dollar

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The Naira on Tuesday shook off Monday’s drop as it gained points against the dollar in the parallel market on the first day of the new month.
The Nigerian currency exchanged at N36​3.
Pound Sterling and the Euro closed at N475 and N422, respectively.


The Naira had on Monday closed at 365.
Meanwhile, the Central Bank of Nigeria (CBN) yesterday, offered $100 million in wholesale auction at the inter-bank Foreign Exchange market and intervened in the Small and Medium Enterprises (SMEs) and invisible segments, with the sum of $50 million and $45 million, respectively.
Confirming the figures, CBN Acting Director, Corporate Communications, Isaac Okorafor reiterated that the Bank’s intervention was in line with its commitment to sustain liquidity in the market to meet genuine requests as well as deepen flexibility in the foreign exchange market.
Monday’s sale follows the major intervention, last Friday, to the tune of $462,336,426.74, comprising $267,336,426.74 for the Retail Secondary Market Intervention Sales (SMIS), $100,000,000 for wholesale interventions, $50,000,000 for the SMEs forex window and $45,000,000 for invisibles.
Okorafor had said last week that the CBN leadership was quite impressed by the positive impact its current foreign exchange management was having on the manufacturing sector, agriculture and economic activities in general across the country.
He said the CBN would not continue working on achieving the objective of convergence between the exchange rates at the Nigeria Autonomous Foreign Exchange (NAFEX) and the Bureau-de-Change segments of the market, even as he assured proper surveillance of the forex market to guarantee transparency in the sale of foreign exchange.
Mr. Okorafor also encouraged those who genuinely required foreign exchange for their transactions to approach their banks, noting that the banks had enough forex to meet the demands for foreign exchange within the time frame stipulated by the CBN.

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