Naira Gains against the US dollar at the BDC segment on CBN Special Intervention

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… In line with our expectation, the local currency gained against the USD at the Bureau De Change (BDC) by 0.27% to N364/USD amid series of special interventions introduced by CBN. Also, the Naira appreciated at the parallel (‘black’) market segments by 0.54% to close N368/USD.

The local currency gained at the Interbank Foreign Exchange market by 0.18% to close at N359.61/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.

However, the Naira depreciated at Investors & Exporters Forex Window (I&E FXW) by 0.34% to close at N365.33 amid increased demand. Meanwhile, the Naira/USD depreciated for all foreign exchange forward contracts – spot, 1 month, 2 month, 3 months, 6 month and 1 year FX rate rose by 0.02%, 0.42%, 0.50%, 0.60%, 0.53% and 0.25% respectively to close at N306.88/USD, N369.80/USD, 372.84/USD, 376.52/USD, 387.17/USD and 414.53/USD respectively.

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.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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