Naira climbs to N318.25/$1 on interbank at trading week close

July 29, 2016 (FxMallam) The Nigerian Naira remained stable at the parallel market to close the week trading at N378 to the dollar remaining largely unchanged throughout the week.

At the interbank, the story was a bit better for the naira. The naira exchange rate trimmed some of the losses recorded against the dollar during the week as it climbed further to N318.25 to a dollar on Thursday, stronger than the N322.85 to a dollar it had closed on Thursday as the market continued on the path towards relative stability.

Earlier this week, in a strong bid to tame inflation, the Central Bank of Nigeria had on Tuesday raised the Monetary Policy Rate (MPR), otherwise known as interest rate to 14 percent from 12 percent. The effects of the move on the naira both long and short term is yet to be seen.

CBN also assured Nigerians of the stability of the banking sector, saying whilst it was poised to deal ruthlessly with any misdemeanor and malpractice, the recent removal of some banks chiefs was not a sign of distress.

Skye Bank

Earlier Friday, Reuters reported that CBN had “injected more than 100 billion naira ($315 million) into Skye bank after sacking the lender’s top management this month for failing to meet minimum capital requirements.”