In the just concluded week, the local currency appreciated by 0.11% at the Investors & Exporters Forex Window (I&E FXW) to close N360.50.
However, at the Interbank Foreign Exchange market, NGN/USD rose (i.e. Naira depreciated) by 0.06% to close at N356.60/USD despite the sustained 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.
Also, Naira lost against the US dollar by 0.28% each at both the Bureau De Change (BDC) and the parallel (‘black’) market segments to close at N359/USD and N361/USD respectively.
Meanwhile, the Naira/USD exchange rate fell (i.e. Naira gained) for all of the foreign exchange forward contracts – spot rate, 1 month, 2 months, 3 months, 6 months and 12 months rates fell by 0.02%, 0.08%, 0.12%, 0.23%, 0.21% and 0.34% to close at N306.95/USD, N363.36/USD, N366.19/USD, N369.01/USD, N380.69/USD and N402.90/USD respectively.
In the new week, we expect appreciation of the Naira against the USD in most market segements, especially at the I&E FXWindow, as CBN sustains its special interventions.