Naira Gains Against the US Dollar at Most Market Segments…


In the just concluded week, the local currency appreciated at the Investors & Exporters Forex Window (I&E FXW) by 0.04% to close at N361.49. Also, the NGN/USD rate at the Interbank Foreign Exchange market fell ( i.e Naira gained) by 0.04% to close at N356.97/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.

At the parallel (‘black’) market and Bureau De Change (BDC) market segments, Naira appreciated by 0.55% and 0.56% to close at N360/USD and N357/USD respectively.

Meanwhile, the Naira/USD exchange rate fell further (i.e. Naira sustained gains) for most of the foreign exchange forward contracts – 1 month, 2 months and 3 months rates moderated by 0.16%, 0.16% and 0.06% respectively to close at N364.07/USD, N367.06/USD and N370.47/USD respectively; however, the Naira/USD exchange rate rose (i.e. Naira lost) for spot rate and 12 months forward contracts by 0.02% and 0.03% to close at N306.80/USD and N412.66/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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