By Nse Anthony-Uko
ABUJA, (Sundiata Finance) – The naira remained flat at N381 to a dollar for the third consecutive day on the parallel market on the heels of Central bank of Nigeria (CBN) sustained interventions. The naira since Monday remained at N381 (selling rate) and N375 (buying rate) to a dollar, while the Pound Sterling and the Euro closed at N490 and N420 respectively.
The CBN in two weeks lifted the foreign exchange market with a $712.3 million intervention to ease pressure on the naira. Trading at the interbank market showed that the Naira closed at N305.40 to a dollar. Experts attributed the stability to increased liquidity but appealed to the CBN to sustain it to further reduce the gap between the official and parallel market rates.
Commenting after the Monetary Policy Meeting on Tuesday, The CBN governor, Mr. Godwin Emefiele said committee members were pleased with the gradual retreat in inflation, the relative stability in the Naira exchange rate across all segments of the foreign exchange market and the improved prospects of foreign investment inflow
He’d said the drop in headline inflation to 17.24 per cent in April 2017 can be attributed to recent gains in the naira exchange rate, brought about by the CBN’s interventions in the foreign exchange market and the resulting downward price adjustments on imported items and their derivatives
According to him, “Against this background, the Committee emphasized the need to sustain and deepen the Bank’s foreign exchange management policies and measures in order to reap the benefits of the pass-through to consumer prices.
“The MPC recognized the continued influence of structural factors such as high energy and transportation costs, production bottlenecks on prices and hoped that the ongoing reforms by the Government would address some of these constraints.
“Consequently, the Committee observed that the average naira exchange rate remained stable at the inter-bank segment of the foreign exchange market in the review period.”