CBN depreciates naira to N305.9/$ in official market

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The Central Bank of Nigeria (CBN) depreciated the Naira to N305.9 per dollar in the official inter-bank market, day after its Monetary Policy Committee (MPC) meeting.

For months now, the CBN had pegged the naira exchange rate within a range of N305.85 to N305.8 per dollar whilst it daily sells to commercial banks and Bureau De Change operators to meet up with dollar shortages in the market.

The committee meeting chaired by, CBN governor, Mr. Godwin Emefiele observed that rates in the foreign exchange market remained relatively stable in near term, supported by continued intervention in the market by the Bank, sustained increase in the price of crude oil in the international market, as well as positive developments in the external sector.

The committee had observed with satisfaction high level of activities in the Investors’ and Exporters’ (I&E) window of the foreign exchange market which continued to supply liquidity in foreign exchange market, narrow exchange rate premium, and reduce speculative activities in the market.

“The Committee noted the commencement of the currency swap deal with the People’s Bank of China (PBoC) and observed that the availability of Renminbi currency to Nigerian investors would ease pressure in the foreign exchange market.

“The MPC called for speedy implementation of the framework of the currency swap and urged the Bank to carry out sensitization programme for the public” the CBN governor said in a communiqué obtained by NewsDirect.

However, data from FMDQ OTC website disclosed that Naira at the I&E Foreign Exchange window gained 0.06per cent against the Dollar to close at N361.45 from N361.87 it opened for trading.

However, it lost 0.25per cent and 0.17per cent against the Pound and Euro to close at N472.92 and N419.98 respectively.

A total of $274.69 was transacted through the I&E window on Wednesday against  $874.69 million that was traded on Tuesday.

In the parallel market, the Naira shed 0.42per cent and 0.48per cent against the Euro and Pound to close at N420 and N480 respectively while it remained unchanged at N360/Dollar.

The Money market rates came in mixed on Wednesday with the Overnight rate increasing by 21basis points to close at 8.21per cent while the Open Buy Back rate shed 10basis points to close at 7.07per cent.

Activities in the bond segment were mixed today with yields on the 7yr and 10yr benchmark bonds down by one basis point and two basis points to close at

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