Naira Loses Against USD for Most FX Forward Contracts…

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In line with our expectations, the Naira/USD exchange rate rose (Naira depreciated) for most of the foreign exchange forward contract as external reserves dropped by 0.22% to USD41.33 billion as at Wednesday, November 24, 2021.

Hence, 1 month, 2 months, 3 months, 6 months and 12 months contracts increased by 0.09%, 0.06%, 0.05%, 0.07% and 0.23% to close at N415.94/USD, N418.49/USD, N421.22/USD, N430.36/USD and
N448.01/USD respectively.

Also, Naira/USD exchange rate rose by 0.37% at the Investors and Exporters FX window to close at N415.94/USD.

In the same vein, Naira depreciated against the greenback by 5.70% to close at N565.50/USD at the Parallel market.

Elsewhere, the NGN/USD closed flat at N430.00/USD at the Interbank Foreign Exchange market amid 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 weaken slightly against the USD as external reserves threatens to breach its current level of USD41.33 billion