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Naira Gains as CBN Floods Market with $457.3m.

May 17 2017
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Naira Gains as CBN Floods Market with $457.3m. Thisday Online

The naira appreciated to N386 to the dollar on the parallel market Monday, stronger than the N390 to the dollar it maintained throughout last week, as the Central Bank of Nigeria (CBN) injected the sum of $457.3 million into various segments of the market.

 

A breakdown of the offer indicated that both spot and forwards garnered the sum of $267.3 million while the wholesale segment got $100 million. Also, the small and medium scale enterprises (SMEs) and invisibles segments comprising of basic travel allowance, tuition fee and medical got and $50 million and $40 million respectively.

 

Meanwhile, a check on the volume of trading on the Investors and Exporters foreign exchange window in the past three weeks on the FMDQ platform revealed that the sum of $600 million has been sold by both the CBN and autonomous sources. This, was largely responsible for the positive momentum observed in the stock market in the last three weeks.  Read more

 

Stock Market Surges 12% in Three Weeks on Rising Investor Confidence in FX Window. Nigeria’s monthly FX inflow dropped to $2.61bn in January. Thisday Online

From being the worst performing market among its emerging market peers, the Nigerian equities market has made record gains for three weeks in a row, surging by 11.9 per cent, following renewed demand for stocks by foreign portfolio and domestic investors on the back of introduction of the new foreign exchange window for investors and exporters by the Central Bank of Nigeria (CBN).

 

In a bid to boost liquidity in the forex market, the CBN introduced the window last April that allows market participants to determine the exchange rate of the naira on a willing buyer, willing seller basis.

 

But to promote liquidity and professional market conduct, the central bank may from time to time participate in the market.  Read more

 

Last changed: May 17 2017 at 8:28 AM

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