The dollar was sold for N363.04 at the I&E Window, N0.63 higher than the $/N362.41 it exchanged on Tuesday, despite the Central Bank of Nigeria’s (CBN) injection of $210million into the forex market earlier in the week to ensure liquidity . But the local currency remained stable at $/N359.20 at the parallel market, while the transfer rate closed 0.14 per cent lower at $/N362.00. It was, however, flat at $/N306.20 in the CBN segment of the forex market.
The apex bank has been massive defending the naira, which has helped stabilized it, in spite of flight to safety by portfolio investors as the country heads towards the 2019 general elections.
In spite increase in oil production volume and price, Nigeria’s foreign reserve has decreased -3 per cent as capital repatriation takes its toll on it.
Expected US rate hike has been mounting pressure on emerging markets as investors are lured by increased yields in US market.
The US Federal Reserves Bank had raised benchmark to 1.75 per cent to 2 per cent in June.