Naira Gains Against USD at Most Forex Market Windows…

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In the just concluded week, NGN/USD rate fell (i.e. Naira appreciated) at most foreign exchange market segments. In particular, the NGN/USD exchange rate fell marginally at the Investors and Exporters FX Window by 0.01% to N360.79/USD.

Similarly, the Naira gained against the US dollar at the parallel (“black”) market and the Bureau De Change market by 0.28% each to N360/USD and N358/USD respectively in line with our expectation.

However, the exchange rate was flattish at the Interbank Foreign Exchange market at N357.52/USD 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.

Meanwhile, the Naira/USD exchange rate fell for most of the foreign exchange forward contracts – 1 month, 2 months, 3 months, 6 months and 12 months rates rose by 0.07%, 0.18%, 0.32%, 0.65% and 0.49% to close at N363.31/USD, N365.93/USD, N368.70/USD, N378.54/USD and N401.72/USD respectively.

However, spot rate rose (i.e. Naira lost) by 0.02% to close at N307.00/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.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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