In the just concluded week, NGN/USD rate rose (i.e. Naira depreciated) at the Investors and Exporters FX Window (I&E FXW) by 0.25% to close at N362.75/USD as the external reserves fell marginally by 0.23% w-o-w to USD38.23 billion.
However, Naira was flattish against the US dollars at the Interbank Foreign Exchange market at N358.51/USD, 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.
Similarly, Naira was unchanged against the USD at the parallel (“black”) to close at N362/USD. The Bureau De Change market was positive this week as Naira gained value against the green back by 0.56% to close at N358.00/USD.
Elsewhere, the Naira/USD exchange rate rose for most of the foreign exchange forward contracts – Spot rate, 1 months, 2 months, 3 months rates depreciated by 0.02%, 0.20%, 0.15% and 0.11% to close at N306.95/USD, N364.65/USD, N366.49/USD and N368.34/USD respectively.
However, 6 months and 12 months rates fell (i.e Naira appreciated) by 0.14% and 0.79% to close at N374.71/USD and N393.23/USD respectively.
In the new week, we expect stability of the Naira against the USD across the market segements as CBN increased
CRR to 27.50% in order to mop up liquidity it iniatially created.