The Nigerian Naira gained against the US dollar in the new interbank market on Wednesday after the Central Bank of Nigeria sold dollar to stabilize the market.

The Naira closed at N282.80 a dollar from 284.5 recorded on Tuesday.

Since the apex bank abandoned its 16-month fix rate on Monday, the central bank has sold about $4.1bn in both spot and forward markets to clear the backlog of demand for forex and modulate prices.

“The market expects the central bank to continue to intervene on a daily basis for now as it is easily the only source of dollar supplies,” said Mr. Sewa Wusu, the Head of Research at SCM Capital Limited.

“Foreign direct investment and portfolio flows are yet to start flowing in as investors wait on the sidelines to watch for liquidity, price discovery and stability,” he added.

Forward contracts dropped as traders reduced their bets against the Naira, although some still see it falling about 6.5 percent by September, it is yet uncertain if they are willing to take the risk with the current improvement.

The Naira three month non-deliverable forward contracts dropped 4.7 percent to 302.25 per dollar, the most on a closing basis since May 17. While, yearly contracts declined 3.7 percent to 340 per dollar.

“The monetary authority will be a regular participant in the interbank market, at least in the short term, to ensure that sufficient liquidity is available to facilitate two-way trade,” analysts at Johannesburg-based Rand Merchant Bank, including Celeste Fauconnier and Nema Ramkhelawan-Bhana, said in a note to clients.

http://investorsking.com/naira-rises-to-282-as-cbn-boosts-dollar-supply/

noted...

With our depleted foreign reserve...I think it will do us more harm than good...anyway...I blame people that has been putting undue pressure on govt to change her foreign exchange regime...

Aristo3146:
With our depleted foreign reserve...I think it will do us more harm than good...anyway...I blame people that has been putting undue pressure on govt to change her foreign exchange regime...

How do you mean? Without flexible forex policy the economy will be in recession this second quarter, without options to halt inflation and ease unemployment rate.

But now, we will attract FDI in the long-run and businesses that are closing up or left will stay. Non-oil exporters are allowed unrestrained access to their FX proceeds to further aid supplies.

It will work if well managed

thread closed

zlatan10:
thread closed

Thread unclosed.
It seems you dont want to hear positive news about Nigerians.

honourhim:


Thread unclosed.
It seems you dont want to hear positive news about Nigerians.

bro relax.
the only thing mynd44 knows how to do after posting a new link is *THREAD CLOSED* http://www.blablablabla
i wonder why he hasn't closed it already

Truth234:


How do you mean? Without flexible forex policy the economy will be in recession this second quarter, without options to halt inflation and ease unemployment rate.

But now, we will attract FDI in the long-run and businesses that are closing up or left will stay. Non-oil exporters are allowed unrestrained access to their FX proceeds to further aid supplies.

It will work if well managed

You have a point...More wisdom to your grey hair...

Noted

We have some banks that are currently doing well in this difficult economy. especially FBN Merchant Bank. In October 2014, FBN Holdings acquired 100% equity in Kakawa Discount House Limited, and subsequently secured approval to commence Merchant Banking operations as FBN Merchant Bank.The acquisition served as a strategic fit into the FBN Holdings portfolio and created an institution with a stronger balance sheet and access to a wider universe of funding sources. To get more information on this brand : http://fbnmerchantbank.com/about-fbn-merchant-bank/

In a bid to proactively address the need for credible alternatives to invest local and USD denominated funds, the Asset Management business of FBNQuest (a part of the FBN Holdings Group), has launched two new mutual funds – the FBN Nigeria Smart Beta Equity Fund and the FBN Nigeria Eurobond (USD) Fund. http://www.fbnquest.com/asset-management/