Naira Loses against USD at Bureau De Change, Parallel (“black”) Markets…

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In the just concluded week, Naira depreciated against the USD at the Bureau De Change as well
as the parallel (“black”) markets by 1.11% and 1.09% respectively to close at N457/USD and
N462/USD respectively.

However, the Naira closed flat at N385.83/USD at the Investors and Exporters FX Window (I&E FXW).

Similarly, NGN/USD closed flat at N381/USD at the Interbank Foreign Exchange market amid weekly
injections of USD210 million by CBN into the forex 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 depreciated for most of the foreign exchange forward
contracts: 1 month, 2 months, 3 months, 6 months and 12 months rates fell by 0.03%, 0.07%, 0.14%, 0.36% and 0.72% respectively to close at N386.50/USD, N387.29/USD, N388.19/USD, N391.30/USD and N400.25/USD respectively.

However, spot rate closed flat at N381.00/USD.

In the new week, we expect Naira/USD to remain stable at the Bureau De Change market amid sustained intervention by CBN.

However, we expect marginal depreciation at the Investors and Exporters FX Window (I&E
FXW) as 12 months forward contract depreciated to N400.25/USD signaling where the free market should trade.

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