Naira reverses gain, closes at 363/dollar

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August 7, 2017/Punch

Oyetunji Abioye

The naira closed at 365 per United States dollar at the parallel market on Sunday, reversing the gain it recorded in the past week.

The local unit had closed last week at 363/dollar.

The naira, which initially traded at 365/dollar, recorded slight after the Central Bank of Nigeria sold $462m to players in the foreign exchange market last Monday.

Specifically, the regulator sold the total sum of $462,336,426.74.

A breakdown showed that the Retail Secondary Market Intervention Sales received the largest allocation of $267.3m, while the sum of $100m was offered for wholesale interventions; the sum of $50m was allocated to the Small and Medium Enterprises forex window.

Those requiring foreign exchange for Business/Personal Travel Allowances, tuition and medical fees, among others, got a total allocation of $45m.

The naira is forecast to trade in a narrow range this week, and is expected to get support due to dollar inflows from CBN.

At the official interbank market, the naira has stuck around 305.90/dollar since August 2016.

On the CBN Investor and Exporters FX window, the local currency was quoted at 367 to the dollar, Reuters reported.

Economic and financial analysts said the continued intervention by the CBN was helping the regulator to keep the local currency from depreciating beyond the current state.

They said if the central bank failed to sell the greenback, the naira could begin to slide further.

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