In the just concluded week, NGN/USD rate closed flat at most foreign exchange market segments.
Specifically, the NGN/USD exchange rate was flattish at the Bureau De Change market at N357.00/USD as well as the Interbank Foreign Exchange market at N357.68/USD amid the 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.
However, the Naira further lost against the US dollar at the Investors and Exporters FX Window (I&E FXW) by 0.17% to close at N362.57/USD. On the flip side, NGN/USD rate fell (i.e. Naira appreciated) at the parallel (“black”) market by 0.28% to close at N359/USD.
Meanwhile, the Naira/USD exchange rate fell (i.e. Naira appreciated) for most of the foreign exchange forward contracts – spot rate, 3 months, 6 months and 12 months rates fell by 0.02%, 0.01%, 0.01% and 0.60% to close at N306.85/USD, N370.52/USD, N380.46/USD, N400.04/USD respectively.
However, 1 month and 2 months rates rose by 0.17% and 0.11% to close at N365.12/USD and N367.77/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.