Naira Appreciated Against USD at I&E FX Window as Bonny Light Crude Price Rises

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A clerk at a money exchange bureau counts Naira, Nigerian currency, in Maiduguri, Nigeria, on Wednesday, May 1, 2019. Photographer: Jean Chung/Bloomberg

In line with our expectations, Naira appreciated against the USD at the Investors and Exporters FX Window (I&E FXW) by 0.19% to close at N386.50/USD as Bonny Light crude price appreciated by 3.92% to USD39.77/barrel.

However, Naira closed flat against the USD at the Bureau De Change and the parallel (“black”) markets at N440.00/USD and N450.00/USD respectively.

Also, NGN/USD closed flat at the
Interbank Foreign Exchange market, at
N358.51/USD, amid 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 decreased by 0.44%, 0.67%, 0.89%, 1.56% and 2.93% respectively to close at N387.36/USD, N389.21/USD, N391.32/USD, N396.88/USD and N414.06/USD respectively.

However, spot rate was unchanged at N361.00/USD.

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