In the just concluded week, NGN/USD rate depreciated at most foreign exchange market segments. Specifically, the NGN/USD exchange rate depreciated at the Interbank Foreign Exchange market by 0.17% to N357.53/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. Similarly, the exchange rate rose (i.e. Naira depreciated) at the Investors and Exporters FX Window by 0.07% to N360.74/USD.
However, the Naira appreciated at the parallel (“black”) market by 0.28% to N361/USD while it remain unchanged at the Bureau De Change market at N359/USD. Meanwhile, the Naira/USD exchange rate moved in mixed directions among foreign exchange forward contracts – spot, 6 months and 12 months rates fell (i.e. Naira gained) by 0.02%, 0.24% and 0.91% to close at N306.90/USD, N380.62/USD and N404.53/USD respectively.
However, Naira/USD exchange rate rose (i.e. Naira lost) for 1 month, 2 months and 3 months by 0.02%, 0.02% and 0.06% to N363.46/USD, N366.50/USD and N369.83/USD respectively.
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