Lagos, Nigeria – The emergence of a new Central Bank of Nigeria (CBN), Mr Yemi Cardoso and four deputies on Tuesday have generated mixed reactions in the foreign exchange (forex) market.
As per Business Post reports there was Naira improvement in the Investors and Exporters (I&E) window, however, the reverse was the case in the Peer-to-Peer (P2P) and the black market segments.
The immediate plan to stabilise the Naira would be for the apex bank to settle some financial obligations and make “transparent rules”, said the CBN governor after his confirmation on Tuesday.
“Number one is what I will term an operational issue. Right now, we have a situation where we are aware that there are unsettled obligations by the CBN,” Mr Cardoso said.
The Naira, in the spot market, strengthened against the United States Dollar during the session by 2.35 per cent or N18.17 to sell at N755.08/$1 compared with Monday’s value of N773.25/$1.
Data obtained from the FMDQ Securities Exchange showed that the supply of FX into the official market increased by 112 per cent or $71.84 million to $135.98 million from the preceding day’s $64.14 million.
In the P2P, the domestic currency weakened against its American counterpart by N15 yesterday to quote at N1,021/$1, in contrast to the previous day’s rate of N1,006/$1.
In the parallel market, the Nigerian currency lost N6 against the greenback on Tuesday to trade at N999/$1 versus the previous day’s exchange rate of N993/$1.
The local currency also depreciated against the Pound Sterling in the official market yesterday by N23.25 to trade at N948.10/£1 compared with the previously traded rate of N924.85/£1. However, it gained N5.16 against the Euro to close at N824.38/€1, in contrast to Monday’s closing price of N829.54/€1.