By InvestAdvocate
Lagos (INVESTADVOCATE)- The naira on Thursday traded flat at the parallel market (black market) at N400 to the greenback compared to N378 traded the previous session, Cordros daily currency market update said.
Cordros reports that the local currency in the interbank market had appreciated against one of the three currencies tracked.
It said the naira appreciated 0.96 percent to the pounds sterling to trade at N417.01; while the dollar and euro dipped 0.44 percent and 0.20 percent to at N317.35 and N353.77 to the dollar and euro respectively.
In the parallel market, the pounds sterling and euro depreciated 3.56 percent and 1.25 percent to trade at N510.00 and N425.00 apiece.
This is coming on the heels of the continuation of the efforts to enhance efficiency, facilitate liquidity and transparency in the foreign exchange market by the Central Bank of Nigeria (CBN).
The CBN’s Monetary Policy Committee (MPC) on Tuesday raised Monetary Policy Rate (MPR) 200 basis points from 12 percent to 14 percent; Cash Reserve Ratio (CRR) was retained at 22.5 percent and Liquidity ratio at 30 percent, while the Asymmetric Window was also retained at +200 and -500 basis points around the MPR
Godwin Emefiele, governor of the CBN said this is to support the weak naira and attract more investments.
The naira is facing a tough time in the global forex market and has been plunging with limited dollar supply; making the CBN to hike interest rates to attract investment.
