… 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.