Nigeria’s Naira Loses against USD at I&E FX Window on Demand Pressure…

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In the just concluded week, the Naira/USD
exchange rate depreciated against the
greenback by 0.23% to N418.5/USD at the
I&E FX Window as Bonny light price rised to
USD107.09 per barrel.

However, Naira depreciated against the greenback at the Parallel market by 19.00% to close at
N590.00/USD.

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 went in mixed directions across the foreign exchange forward contracts.

Specifically, 2 month, 3 months and 12 months contracts gained 0.05%, 0.05% and 0.18% to close at N420.92/USD, N423.80/USD and N448.02/USD respectively.

However, 1 months and 6 months contracts lost 00.11% and 0.01% to close at N418.46/USD and N432.66/USD respectively.

In the new week, we expect some level of pressure on the Naira against USD due anticipated pressure on foreign exchange amid electioneering activity coupled with weak petrodollar earnings.