In the just concluded week, the local currency depreciated at the Investors & Exporters Forex Window (I&E FXW) by 0.07% to close at N360.43 despite the 1.35% week-on-week rise in external reserves to USD43.51 as at Wednesday, March 20, 2019.
Also, the NGN/USD rate at the parallel (‘black’) market rose (i.e Naira lost) by 0.28% to N360/USD. However, at the Interbank Foreign Exchange market NGN/USD rate moderated (i.e Naira gained) by 0.32% to close N355.78/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, Naira was flattish against US dollar at the Bureau De Change (BDC) market segments, to close N357/USD. Meanwhile, the Naira/USD exchange rate rose (i.e. Naira lost) for most of the foreign exchange forward contracts – 1 month, 2 months, 3 months, 6 months and 12 months rates increased by 0.12%, 0.17%, 0.21%, 0.06% and 0.41% respectively to close at N362.78/USD, N365.89/USD, N369.78/USD, N381.53/USD and N403.32/USD respectively; however, the Naira/USD exchange rate fell (i.e. Naira gained) at the spot market by 0.02% to close at N306.90/USD. 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.