Nigerian non-deliverable dollar naira forwards fall on central bank FX reforms


Nigerian non-deliverable forwards fell across the curve on Wednesday after the central bank launched a new interbank foreign exchange trading window to boost the supply of hard currency in Africa’s biggest economy, its governor said.

Non-deliverable currency forwards, a derivative product used to hedge against future exchange rate moves, indicated markets expected the naira’s exchange rate at 366 to the dollar in 12 months’ time, compared to 331.78 at Tuesday’s close. NGN1YNDFOR=

One-month dollar-naira NDFs fell by 3.55 percent to 300 to the dollar.