The foreign exchange market yesterday remained calm as currency dealer wait endlessly for the framework of the new flexible exchange by the Central Bank of Nigeria (CBN).
The naira yesterday traded stable at the autonomous and parallel markets, closing at N353 and N355 against the dollar.
Analysts in the financial system had expected pressure on naira/dollar exchange rate transaction to continue this week, if the delay by CBN persists.
The local foreign exchange market last week witnessed stability across the various segments – CBN clearing rate, interbank market rate and parallel market rate closed flat at N197/$, N199.10/$ and N350/$, respectively.
However, the local currency appreciated at the Bureau De Change by 0.58 percent to N345/$. This was amid reports of a 14.28 percent increase in local crude oil production to 1.6 million barrels per day. On a negative note, Nigeria’s foreign exchange reserves declined week-on-week by 0.25 percent to $26.37 billion as of Thursday.
Meanwhile, the central bank was still in consultations with bank industry players to determine the modus operandi of the new forex policy framework.
In a related development, foreign exchange forward contracts showed strengthening of the naira against the greenback as the 7 days, 6 months and 12 months dated contracts appreciated by 0.02 percent, 0.77 percent and 0.42 percent to N199.61/$, N214.10/$ and N220.77/$, respectively.
“We anticipate continued pressure on the foreign exchange market against the backdrop of declining foreign exchange reserves,” analysts at Cowry Asset Management said.
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