In the just concluded week, NGN/USD rate remain unchanged at most foreign exchange market segments.
Specifically, the NGN/USD exchange rate was flattish at the Interbank Foreign Exchange market at N357.53/USD amid sustained 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. Similarly, the Naira closed flat against the US dollar at the parallel (“black”) market and the Bureau De Change market at N361/USD and N359/USD respectively.
However, the exchange rate rose (i.e. Naira depreciated) at the Investors and Exporters FX Window by 0.02% to N360.82/USD. Meanwhile, the Naira/USD exchange rate rose (i.e. Naira lost) for all of the foreign exchange forward contracts – spot, 1 month, 2 months, 3 months, 6 months and 12 months rates rose by 0.02%, 0.03%, 0.02%, 0.01%, 0.11% and 0.70% to close at N306.95/USD, N363.56/USD, N366.58/USD, N369.88/USD, N381.03/USD and N403.68/USD respectively.
In the new week, we expect appreciation of the Naira against the USD across the market segements as CBN sustains its special interventions against the backdrop of rising external reserves.