In the just concluded week, NGN/USD rate was unchanged at most foreign exchange market segments. Specifically, the NGN/USD exchange rate remained unchanged at the Bureau De Change and the parallel (“black”) markets to close at N358.00/USD and N360.00/USD respectively.
However, the Naira depreciated against the US dollar by 0.08% to close N357.96/USD at the Interbank Foreign Exchange market 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.
The NGN/USD exchange rate fell (i.e. Naira appreciated) at the Investors and Exporters FX Window (I&E FXW) by 0.01% to close at N363.42/USD. Meanwhile, the Naira/USD exchange rate rose further (i.e. Naira depreciated further) for most of the foreign exchange forward contracts – 1 month, 2 months 3 months, 6 months and 12 months rates rose by 0.13%, 0.20%, 0.21%, 0.79% and 0.30% to close at N367.16/USD, N370.62/USD N373.81/USD, N387.14/USD, N404.10/USD respectively.
However, spot rate was unchanged at N306.90/USD In the new week, we expect depreciation of the Naira against the USD across the market segements despite CBN sustained special interventions given the fear of further crash in crude oil price.