Dec 10 (Lagos) - In November 2015, USD / NGN was marginally higher (+8bps MoM at N198.10) for the second consecutive month with external reserves yet again bearing the brunt (-0.99% to $29.9 billion) of the CBN’s dogged support for the currency.
Elsewhere, the shortage at the parallel market subsisted from previous month to drive the naira markedly down to N242 (-7% MoM), pushing interbank/parallel spread to N44.43/$ from N28/$ as at end of October.
Importantly, CBN’s insistence on BVN verification for Bureau de Change customers as well as the recent sanction of some BDCs over failure to render proper weekly returns on dollar utilization led to a redirection of demand to the black markets.
This has fuelled naira depreciation at the parallel markets. Going forward, analysts at Asset & Resource Management Ltd in Ikoyi expect the naira to continue to play within its N197/N200 band at the interbank as currency control persists. Nonetheless, continued application of administrative restrictions should leave inter bank/parallel spread wide in the near term.
reporting for easykobo.com on Thursday, Dec 10 2015 from Lagos, Nigeria
If you would like to post comments! Please log in.