Naira static at N368 as Pound Sterling falls against dollar

By Odunewu Segun

The Nigerian Naira on Wednesday, July 12, remained static at the parallel segment of the Nigerian Foreign Exchange Market after relapsing against the US Dollar losing a point from N367/$ to N368/$ on Tuesday.

The local currency maintained the same rate of Tuesday, July 11, against the United States of America Dollar, trading exchanging at N368.

Against the British Pound Sterling at the black market, the Naira also traded at the same rate of N470, which it traded for the previous day. Meanwhile, it dipped slightly against the European Single Currency, Euro.

The Naira, had on Monday, July 10, kicked off the new week on a positive note at the parallel segment of the Nigerian Foreign Exchange Market.

The local currency appreciated to the rate of N367 against the United States of America Dollar at the black Market on Monday. Compared to the rate of N370/$1, which the naira traded for on Friday, it gained three points against the greenback to close the day at N367/$1.

In a bid to bring stability to the naira in the nation’s foreign exchange market, the Central Bank of Nigeria, CBN, has sustained its intervention in the market.

The apex bank, had on Monday, July 10, injected 142.5 million dollars into the inter-bank foreign exchange, days after intervening in the retail segment of the market with 254.3 million dollars.

ALSO SEE: Naira remains unstable against dollar at parallel market

Meanwhile on the international scene, the British Pound Sterling, on Wednesday, July 12,  hit a two-week low against the dollar and deepened a fall to its lowest in 8 months against the euro on Wednesday after Bank of England Deputy Governor Ben Broadbent said he was not yet ready to raise interest rates.

Sterling dipped around a quarter of a percent to as low as $1.2815. It weakened similarly to 89.49 pence per euro, its lowest since Donald Trump’s election as U.S. President last November.

.“For anyone who had any expectation of an August hike – that is clearly looking very unrealistic now, although he does reinforce that they are moving towards a hike. That will help keep alive expectations for a move later this year,” said Lee Hardman, an analyst with MUFG in London

The swing by several external members of the Bank’s Monetary Policy Committee, as well as chief economist Andy Haldane, towards backing a rise in rates has propped the pound up in the past month at a time of high political uncertainty.

Sterling fell back to as low as $1.26 in the two weeks after Prime Minister Theresa May surprisingly lost her parliamentary majority last month, but it remains some 10 cents above lows hit in a flash crash last October.