Naira Trades At 363/Dollar As CBN Injects $210m Into Forex Market

The Nigerian naira on Monday, February 5, recorded a marginal gain at the parallel market, trading at 363 per United States dollar, up from 364/dollar on Friday.

In recent weeks, the local currency has been trading between 362/dollar and 365/dollar.

Financial experts have said that the naira is likely to remain stable against the greenback this week as demand for the US currency weakens whenever the unit trades below 360 per dollar.

Foreign exchange traders said most forex users were not willing to source dollars weaker than N360 at the Investors & Exporters FX window and that offshore investors had been buying local debt in search of yields, boosting liquidity on the currency market, Reuters reported.

On the official market, the naira was quoted at 305.70, supported by the Central Bank of Nigeria’s regular intervention.

Meanwhile, the CBN injected another sum of $210m into the inter-bank foreign exchange market on Monday.

The regulator has injected over $500m into the forex market last week.

Figures obtained from the CBN on Monday indicated that it offered $100m to authorised dealers in the wholesale segment of the market, while the Small and Medium Enterprises segment received the sum of $55m.

Customers requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance, among others, were also allocated the sum of $55m.

The bank’s Acting Director, Corporate Communications, Mr. Isaac Okorafor, confirmed the figures, adding that those who made bids in the wholesale window would receive value for the bids on Tuesday.

Okorafor reassured the public that the bank would continue to intervene in the interbank foreign exchange market in line with its quest to sustain liquidity in the market and maintain stability.