Naira Gains Against USD for Most FX Forward Contracts on High Crude Prices…

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In line with our expectations, the Naira/USD exchange rate fell further (Naira appreciated) for most of the foreign exchange forward contracts amid rising external reserves: 1 month, 2 months, 3 months, 6 months and 12 months contracts fell by 0.07%, 0.15%, 0.20%, 0.22% and 0.14% to close at N415.57/USD, N418.22/USD, N421.02/USD, N430.06/USD and N447.00/USD respectively.

Also, the Naira/USD exchange rate moderated by 0.17% at the Investors and Exporters FX window to close at N414.40/USD.

However, Naira was flattish against the greenback at N535/USD at the Parallel market.

Elsewhere, the NGN/USD closed flat at N430.00/USD at the Interbank Foreign Exchange market despite its weekly injections of USD210 million: 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

In the new week, we expect Naira to remain stable against the USD as external reserves continue to grow amid rising crude oil prices at the international market.