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Naira Watch: Naira depreciates as CBN injects $195m

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By Babajide Komolafe
The naira depreciated yesterday against the dollar in parallel market and the Nigeria Autonomous Foreign Exchange Market (NAFEX).


Vanguard survey revealed that the naira depreciated to N369 per dollar in the parallel market at the close of business yesterday, up by N1 from N368 per dollar last week.

The naira also depreciated by N1.02 against the dollar in NAFEX (or Investors & Exporters) window, as the rate rose to N368.67 per dollar yesterday from N362.16 last week.

The depreciations were attributed to low dollar supply resulting from the sallah holidays.

Meanwhile the CBN moved swiftly yesterday to boost dollar supply by selling $195 million into various segment of the interbank foreign exchange market. A breakdown of the intervention indicated that authorized dealers in the wholesale window segment received a $100 million offer from the Bank, while the Small and Medium Enterprises (SMEs) and invisibles windows were allocated $50 million and $45 million, respectively.

Acting Director, Corporate Communications Department, Mr. Isaac Okorafor, confirmed the figures and disclosed that the apex bank was impressed by the high level of transparency exhibited by stakeholders in the market.

It will be recalled that the CBN in its last intervention on Friday, June 23, 2017, allocated the total sum of $240 million to the Retail Secondary Market Intervention Sales (SMIS) for spot and forward deals.

With the rate of inflation dropping from its April 2017 figure of 17.24% to 16.25 % at the end of May, 2017, the CBN spokesman says the Bank remains upbeat that the fortunes of the Naira will improve further in the months to come.

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