Meanwhile, the exchange rates at the interbank market since last week have been marked by huge initial trade loss and huge gain before the end of each day’s trade.
The liquidity crunch in the foreign exchange market lingered last week as the local unit remained under pressure, compared to previous week, when the Naira/Dollar exchange rate was less volatile.
At the parallel market, trading at remained high at N395.00/$1 all week except Wednesday and Friday, when it traded at N394.00/$1 and N397.00/$1.
“We believe the exchange rate will remain pressured in the interim until autonomous players return to the market to relieve the CBN of its role of major dollar supplies at the interbank.“We are of the view that the depreciation of the naira, the reforms in the FX market coupled with current attractive yield environment should buoy foreign investor sentiment in Nigerian assets and aid the vital return of foreign capital to the market,” analysts at Afrinvest Securities Limited said.
Meanwhile, the Naira depreciated by 5.50 percent at the spot FX market Friday, August 12 to close at N332.07 to one Dollar, compared with Thursday’s decline of 0.71 percent when one dollar was exchanged for N314.75, according to trading information from the Financial Market Dealers Quote (FMDQ) official site.
However, the Naira from the CBN at the end of trading today, showed that the US Dollar remained unchanged from Thursday’s rate when it was bought at the rate of N309 and sold at N310.
The Pounds Sterling was bought at the rate of N402.6 and sold at N403.9, against previous rates of N400.7 and N402, while the Euro was bought at N346.5 and sold at N347.6 from previous day’s rates of N344.6 and N345.7 respectively
