In the just concluded week, the Naira remained unchanged at the Investors and Exporters Window at N386/USD as oil prices rallied at the international market.
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.
However, Naira weakeaned against the
USD at the Bereau De Change (BDC) and parallel (“black”) markets by 0.44% and 1.29% respectively to close at N460/USD and N470/USD respectively.
Elsewhere, the Naira/USD exchange rate appreciated for most of the foreign exchange forward contracts: 1 month, 2 months, 3 months and 6 months rates fell by 0.06%, 0.12%, 0.18% 0.40% and 0.64% respectively to close at N386.11/USD, N386.34/USD, N386.67/USD, 386.87/USD and N387.33/USD respectively.
However, 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 recent rally in crude oil prices at the international market.