At the close of the trading week, the local currency gained vis a vis the USD at the Investors
& Exporters Forex Window (I&E FXW) by 0.04% to close at N363.60 and also appreciated by 0.17% to N360.85/USD at the Interbank Foreign Exchange market amid weekly injections of USD210 million by CBN into the foreign exchange market via the Secondary Market Intervention Sales (SMIS) of which: USD100 million was allocated to Wholesale SMIS, USD55
million was allocated to Small and Medium Scale Enterprises and USD55 million was sold for invisibles.
In line with our expectation, the Naira remained unchanged at the Bureau De Change (BDC) segment to close N360/USD as CBN continued its weekly intervention.
However, at the parallel (‘black’) market, the Naira depreciated by 0.27% to close at N363/USD.
Meanwhile, the Naira depreciated for most dated foreign exchange forward contracts at the interbank over-the-counter (OTC) segment
– spot, 1 month, 2 months and 3 months lost 0.02 %, 0.04%, 0.07% and 0.07% to close at N306.65/USD, N366.79/USD, N370.16/USD and N373.69%/USD respectively; however, Naira appreciated for 6 months and 1 year FX contracts by 0.11% and 0.32% to close N383.83/USD and N411.59/USD respectively.
In the new week, we expect exchange rate stability in most market segements; howbeit, some pressure at the I&E
FX Window amid falling foreign exchange reserves.