In the just concluded week, Naira depreciated against the USD at the Bereau De Change (BDC) and parallel (“black”) markets by 0.22% and 0.43% respectively to close at N458/USD and N464/USD respectively.
However, Naira remained unchanged at the Investors and Exporters Window at N386/USD as crude oil prices of most variants at the international market recovered from last week losses.
On the other hand, 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 and 6 months rates rose by 0.03%, 0.08%, 0.18% and 0.02% respectively to close at N386.35/USD, N386.80/USD, N387.37/USD and N388.41/USD respectively.
However, the 12 months rates declined by 0.75% to N389.81/USD while the 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. We also expect appreciation at the Investors and Exporters FX Window (I&E FXW) given the relative stability in crude oil prices at the international market.