Naira Gains Against USD at I&E FX Window amid Rising Crude Oil Prices…

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In the just concluded week, the Naira/USD
exchange rate fell (Naira appreciated) by 0.12% to close at N416.00/USD at the I&E FX Window amid rising crude oil prices – Bonny light, Nigeria’s crude variant, touched USD90.17 per barrel as at Thursday, January 20, 2022.

However, Naira depreciated against the
greenback by 0.19% to close at N577.00/USD
at the Parallel market.

At the Interbank Foreign Exchange market, NGN/USD closed flat at N430.00/USD amid CBN’s 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.

Meanwhile, the Naira/USD exchange rate fell for most foreign exchange forward contracts.

Specifically, 2 months, 3 months, 6 months and 12 months contracts fell by 0.06%, 0.01%, 0.07% and 0.64% to close at N419.68/USD, N422.89/USD, N432.80/USD and N444.22/USD respectively.

However, 1 month FX forward contract rose (Naira depreciated) by 0.01% to close at N417.07/USD.

In the new week, we expect Naira to further appreciate against the USD amid rising crude oil prices at the international market.

However, the drop in output may affect exchange rate in the near to medium term.