Naira strengthened N5.56 w/w against USD at I&E FX Window on Buy Pressure…

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In the just concluded week, the Naira/USD
exchange rate appreciated by 1.24% against the
last week price of N421.33/USD to close at
N415.77/USD at the I&E FX Window likewise
the Bonny light price rose to USD118.52 from
USD115.4 per barrel in the previous week.

However, Naira depreciated against the
greenback at the Parallel market by 1.33% to
close at N607.06/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 rose for all the foreign exchange forward contracts.

Specifically, 1 month, 2 months, 3 months, 6 months and 12 months contracts gained 0.96%, 1.09% 1.05%, 1,12% and 1.1% to close at N422.13/USD, N424.65/USD, N431.97/USD, N443.59/USD and N467.12/USD respectively.

In the new week, we expect the local currency to trade in a calm manner against the greenback barring market distortions amid electioneering activity coupled with weak petrodollar earnings for the country.