Naira hits 400/dollar on CBN’s investors FX window

wp 1493068832736 - Naira hits 400/dollar on CBN’s investors FX window
The Nigerian Naira traded at 400 to the United States dollar in deals for investors on Monday at the Investors FOREX window.

The window was designed by the Central Bank of Nigeria (CBN), to allow investors, trade in the currency at market-determined rates.

Trading sources said investors were demanding rates above N400/dollar while locals were quoting rates as low as N350/dollar.

The sources said traders held a conference call last Friday with market regulator FMDQ OTC Securities Exchange to discuss the wide range of quotes on the naira for investors, although the meeting did not produce any resolutions.

FMDQ provides daily opening and closing quotes on the naira.

Traders, worried about illiquidity in the currency market despite making the exchange rate market-determined for investors, said no resolution was reached at the meeting.

“We have done deals around N400/dollar levels,” one trader said, adding that, “Some of the off-shores investors are insisting on N400/dollar.”

ALSO READ:  Nigeria set to issue first green bond soon – says Amina Mohammed

The CBN had in April said it would allow investors to trade the naira at market-determined rates, a move intended to improve the dollar supply and attract foreign investors who bolted from Nigeria at the start of the latest naira crisis.

The move introduced yet another exchange rate to the five existing ones. Still, analysts doubted it would be enough to draw more hard currency into the economy.

Investors have questioned the over-the-phone trading system for lack of price discovery and transparency.


Enjoyed This Article Then You Will Definitely Enjoy The Following:

ALSO READ:  Dollar | Pounds | Euro to Naira exchange rate today Wednesday, 14th June 2017
We believe this article was helpful, if yes, dont hesitate to share this information:

Leave a Reply

Your email address will not be published.