Naira maintains strength as Euro slumps

The Nigerian Naira on Thursday, February 22, maintained strength against the United States of America Dollar at the parallel segment of the foreign exchange market.

The Naira exchanged at the rate of N363 against the greenback at the black market. Against the British Pound Sterling, the Naira exchanged at the rate of N500

The local currency, however, appreciated against European Single Currency, Euro, exchanging at the rate of N442.

Meanwhile the CBN had injected over $500m into the forex market. Analysts have said that the naira is likely to remain stable against the greenback this week as demand for the US currency weakens whenever the unit trades below 360 per dollar.

Foreign exchange traders said most forex users were not willing to source dollars weaker than N360 at the Investors & Exporters FX window and that offshore investors had been buying local debt in search of yields, boosting liquidity on the currency market, Reuters reported.

Figures obtained from the CBN indicated that out of the last intervention, it offered $100m to authorised dealers in the wholesale segment of the market, while the Small and Medium Enterprises segment received the sum of $55million.

On the international market, the European Single Currency, euro touched its lowest level since Feb. 12 at $1.2260 earlier on Thursday, February 22, but was last steady on the day at $1.2283.

The Bank of England could end up needing to raise interest rates faster than investors expect, its chief economist told lawmakers on Wednesday, striking a slightly more hawkish tone than his central bank colleagues.

Euro zone business growth remained robust this month, with companies at their most optimistic in more than five years, a private-sector survey showed, despite indications higher prices and a stronger currency were taking a toll.

Meanwhile, the Pound Sterling stayed at a one-week low, as markets grew more convinced that the Bank of England will raise interest rates again in May on the back of an improving economy, though already large bullish positions may temper any big move higher.

The dollar on the other hand, soared to a 10-day highi, after minutes from the U.S. Federal Reserve’s January meeting showed policymakers confident in rising inflation and the need for interest rates to keep increasing.