In line with our expectations, Naira appreciated against the greenback by 0.37% to N413.38/USD at the Investors and Exporters FX window amid receipt of USD4 billion inflow from eurobonds.
However, the Naira/USD exchange
rate further rose (Naira depreciated) at the Bureau De Change and Parallel markets by 0.88% and 0.887% to close at N575.00/USD and N577.00/USD respectively.
Meanwhile, NGN/USD rate closed flat at N380.69/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 moderated (Naira appreciated) for most of the foreign exchange forward contracts: 1 month, 2 months, 3 months, 6 months and 12 months contracts fell by 0.15%, 0.35%, 0.47%, 0.79% and 1.52% to close at N415.45/USD, N417.67/USD, N420.22/USD, N428.06/USD and N443.78/USD respectively. However, spot rate was flat at N380.69/USD.
In the new week, we expect Naira to stabilise against the USD as CBN has more firepower to defend the local currency given the increase in external reserves which touched USD36.41 billion as at September 28, 2021.