In the just concluded week, local currency appreciated by 0.28% at the Bureau De Change segment to close at N358 on sustained dollar sales by the apex bank to BDCs at USD75,000 per BDC.
The NGN/USD exchange rate closed flat at the Interbank Foreign Exchange market and parallel (“black”) market at N356.92/USD and N361/USD respectively amid 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.
However, Naira depreciated against the US dollar at the Investors & Exporters Forex Window (I&E FXW) by 0.10% to N36.74/USD. Meanwhile, the Naira/USD exchange rate rose (i.e. Naira lost) for most of the foreign exchange forward contracts – spot rate, 1 month, 2 months, 6 months and 12 months rates rose by 0.02%, 0.09%, 0.04%, 0.21% and 0.76% to close at N306.95/USD, N363.21/USD, N365.98/USD, N379.85/USD and N400.72/USD respectively.
However, Naira/USD exchange rate for 3 months forward contract fell (i.e. Naira gained) by 0.05% to close at N369.05/USD. In the new week, we expect appreciation of the Naira against the USD across the market segements as CBN sustains its special interventions against the backdrop of rising external reserves.