Naira Gains Against USD at the I&E FXW on Rising Crude Oil Prices…

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A gas station attendant displays a large bundle of naira banknotes after selling fuel to a customer in Port Harcourt, Nigeria, on Friday, Jan. 15, 2016. With his security forces engaged in fighting Boko Haram's Islamist insurgency in the north, President Muhammadu Buhari can't afford renewed rebellion in the delta. Photographer: George Osodi/Bloomberg

In line with our expectations, Naira appreciated further against the USD at the Investors and Exporters FX Window (I&E FXW) by 0.02% to close at N385.94/USD as crude oil prices rallied at the international market.

However, Naira depreciated further against the USD at the Bureau De Change and the parallel (“black”) markets by 2.27% and 1.10% respectively to close at N450.00/USD and N460.00/USD respectively.

However, NGN/USD closed flat at
the Interbank Foreign Exchange market, at
N358.51/USD, amid injection of weekly
injections of USD210 million by CBN into the foreign exchange market: USD100 million was allocated to Wholesale Secondary Market Intervention Sales (SMIS), USD55 million was allocated to Small and Medium Scale Enterprises and USD55 million was sold for invisibles.

Elsewhere, 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 gained 0.12%, 0.19%, 0.25%, 0.47% and 0.90% respectively to close at N387.69/USD, N389.48/USD, N391.33/USD, N396.72/USD and N415.01/USD respectively. However, spot rate remained flattish at N361.00/USD.

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