FOREX MARKET: Naira Depreciates against USD, Rises to N364.17/USD at I&E FX Window…

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In the just concluded week, NGN/USD rate rose further (i.e. Naira depreciated) at the Investors
and Exporters FX Window (I&E FXW) by 0.11% to close at N364.37/USD as external reserves fell further to USD37.73 billion on Thursday,
February 6, 2020 from USD38.06 billon on Thursday January 30, 2020.

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 Bureau De Change and the parallel (“black”) markets to close at N358/USD and N360.00/USD respectively.

Elsewhere, the Naira/USD exchange rate rose for most of the foreign exchange forward contracts – 1 months, 2 months, 3 months, 6 months and 12 months rates depreciated by 0.21%, 0.24%, 0.20%, 0.56% and 1.09% respectively to close at N367.14/USD, N369.57/USD, N371.69/USD, N379.26/USD and N399.75/USD respectively.

However, Spot rate fell by 0.02% to close at N307.00/USD.

In the new week, we expect stability of the Naira against the USD across the market segements as CBN sustain its intervention

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