By Kayode Tokede, Lagos
Naira, on Monday exchanged at $1/N367 against $1/N370 sold over the weekend, and also appreciated to Euro N414 per compare to N420 traded on Friday at the parallel segment of the foreign exchange market.
This is just as Investors & Exporters F widow, otherwise known as NAFEX has recorded forex trading not less than $3.83 billion, since its establishment on April 24, foreign exchange traders revealed yesterday.
However, the Naira on the NAFEX window opened at $1/N364.56 and closed at $1/N361.86 against $1/N363.33 closed on last week Friday.
The local currency, at the official market, steady at $1/N306, the same rate it traded on Friday when the market closed officially for last week, which was a better rate compare to $1/N306.20 exchanged the previous day.
The naira at the unofficial market returned to profitability, as it recorded marginal gains against the dollar and Euro, but remained unchanged to the Pound sterling.
Consequently, foreign exchange traders were of the opinion that the newly introduced Nigerian autonomous foreign exchange rate fixing for foreign investors and exporters window, due to its new transaction record of $3.83 billion in less than three months of it creation will make naira sovereign and stronger in the market.
The window, which was introduced in April, was to attract foreign investors into the country and boost the supply of dollars.
Foreign exchange dealers, explained that the sum of $407 million were traded last week compared to $354.8 million in the previous week, indicating a gradual return in investors’ confidence.
Before the window was introduced, the central bank was the main supplier of hard currency on the interbank forex market, after foreign investors fled naira assets in the wake of an oil price slump in 2014.
Meanwhile, the convergence of foreign exchange rates, including the drop in the gap between the interbank rate and the bureau de change (BDC) from 150 per cent to 23 per cent have been lauded by the Central Bank of Nigeria (CBN) backed Monetary Policy Committee (MPC) members.
They also said that a margin of five per cent was sustainable in most jurisdictions. The BDC rate closed on Friday at $1/N370 while the interbank rate stood at around $1/N316.