In the just concluded week, the local currency appreciated marginally at the Investors & Exporters Forex Window (I&E FXW) by 0.01% to close at N360.29.
However, at the Interbank Foreign Exchange market NGN/USD rate depreciated by 0.13% to close at N356.26/USD 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.
Naira was flattish against US dollar at both the Bureau De Change (BDC) and the parallel (‘black’) market segments at N358/USD and N360/USD respectively. Meanwhile, the Naira/USD exchange rate appreciated for most of the foreign exchange forward contracts – Spot rate, 1 month, 2 months, 3 months and 12 months rates fell (i.e. Naira gained) by 0.02%, 0.02%, 0.06%, 0.11% and 0.26% to close at N306.95/USD, N363.03/USD, N365.78/USD, N368.54/USD and N402.84/USD respectively.
On the flip side, 6 months rate rose (i.e. Naira lost) by 0.05% to close at N381.19/USD. In the new week, we expect stability in the Naira/USD rate in most market segements, especially at the BDC Segment, as CBN sustains its special interventions