Naira spot rate flat at N306.90/USD, Gains at Most Market Segment…

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Naira
In the just concluded week, NGN/USD rate fell (i.e. Naira appreciated) at most foreign exchange market segments. Specifically, the NGN/USD exchange rate fell at the Investors and Exporters FX Window (I&E FXW) as well as the Bureau De Change market by 0.01% and 0.28% respectively to close at N362.04/USD and N357.00/USD respectively. Similarly, the Naira gained against the US dollar to close at N358.02/USD at the Interbank Foreign Exchange market amid 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, NGN/USD exchange rate remained unchanged at the parallel (“black”) markets at N360.00/USD. Meanwhile, the Naira/USD exchange rate fell (i.e. Naira appreciated) for most of the foreign exchange forward contracts – 1 month, 2 months, 3 months, 6 months and 12 months rates fell by 0.06%, 0.09%, 0.10%, 0.37% and 0.09% to close at N365.33/USD, N368.70/USD, N372.24/USD, N383.02/USD and N411.55/USD respectively. However, spot rate was flat at N306.90/USD. In the new week, we expect appreciation of the Naira against the USD across the market segements amid seemingly renewed renewed interest by foreign porfolio investors in local financial assets.

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