Naira Gained 11.94% at Parallel Market in Feb—Report

By Dipo Olowookere

Latest report released last week by FSDH Research has revealed that the Nigerian currency, Naira appreciated at the parallel market in February 2017.

However, according to the report obtained by Business Post, the Naira recorded a decline at the interbank market in the period under review.

FSDH Research said its analysis indicated that the Naira lost marginally by 0.08 percent at the inter-bank market to close at $/N305.50k while it gained 11.94 percent at the parallel market to close at $/N448 at the end of February.

The report noted that the intervention of the Central Bank of Nigeria (CBN) through increase in supply of foreign exchange for some invisible items lifted the value of the Naira in the parallel market.

It further said the effect of the appreciation in the value of the Naira at the parallel market may reflect on the prices of commodities in March 2017.

Also in the report, FSDH Research disclosed that its model indicates that the price movements in the consumer goods and services in February 2017 would increase the Composite Consumer Price Index (CCPI) to 217.41 points, representing a month-on-month increase of 0.78 percent.

“We estimate that the increase in the CCPI in February will produce an inflation rate of 16.95 percent lower than the 18.72 percent because of the sharp increase in the CCPI in February 2016,” FSDH Research said in the report.