Economy

Naira maintains N362.5 to the dollar at parallel market

Naira exchanges at N357 to Dollar, as CBN injects $210m into interbank Forex Market
Written by Maritime First

….As NBS Report says Nigeria’s capital importation rises to 147.5% in Q3***

The nation’s currency, the Naira on Tuesday maintained N362.5 to the dollar at the parallel market, even as the Pound Sterling and the Euro closed at N480 and N430.

At the Bureau De Change (BDC) window, the Nigerian currency was sold at N362 to the dollar, while the Pound Sterling and the Euro traded at N480 and N430.  However, trading at the investors’ window saw the Naira closed at N360.37 to the dollar, while it closed at N305.80, N408.18 and N365.03 against the Dollar, Pound Sterling and the Euro at the CBN window.

Traders expressed optimism at the relative stability of the Naira against the dollar.

The relative stability of the Naira against the Dollar had impacted positively on price stability of most goods in the market.

The hitherto volatility in the prices of goods and services that greeted the fluctuation in the Naira rates before the intervention of the CBN in February had fast disappeared.

While some experts commended the CBN’s injection of liquidity to the foreign exchange market, others clamoured for productive economy to increase the chances of the nation’s ability to earn in dollars.

Meanwhile, the total capital imported in the third quarter has hit 4,145 million dollars, which doubled the inflow in the second quarter, representing an increased value of 147.5 per cent on a year- on- year basis.

The National Bureau of Statistics (NBS) said this in a report on “Nigerian Capital Importation for third quarter’’ posted on its website on Tuesday.

The bureau stated that capital importation into Nigeria in the third quarter recorded a substantial increase compared to the past few quarters, as the economy continued to recover from recession following its exit in the second quarter.

The total capital imported in the third quarter was recorded at 4,145.1 million dollars, more than double the inflow in the second quarter of this year, representing an increased value of 147.5 per cent on a year on year basis.

According to the report, this inflow of capital in Q3 quarter is the first time since the beginning of 2015 that the capital hit over 4,000 million dollars in a quarter.

The reports noted that the boom in capital importation in Q3 was mainly driven by significant growth in both Portfolio and other Investment.

Capital Importation can be divided into three main investment types: Foreign Direct Investments (FDIs), Portfolio Investment and Other Investments, each comprising various sub-categories.

Meanwhile, the report stated that Portfolio Investment, which was recorded at 2,767.4 million dollars in the third quarter, remained the largest component of capital import.

It said it remained the largest component of capital import and it contributed to 67 per cent of the total amount.

The report stated that the component expanded faster than the other two main categories with a year-on-year growth rate of 200 per cent.

It stated that Foreign Domestic Investments recorded 117.6 million dollars, which fell by 65.5 per cent year –on- year, while other investment increased by 124.55 per cent compared to Q3 of 2016.

It, however, stated that other Investment in the third quarter was more doubled the value in the Q3 of 2016.

The report stated that it doubled the value in the quarter from 516.2 million dollars to 1,260 million dollars; it remained about 30 per cent of the total capital importation.

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Maritime First