Naira Lost Strength Against The Dollar At the Streets As Demand-Supply Mismatch Lingers…


In the just concluded week, the Naira plunged further by (-1.33%) N9 to N686/USD from N677/USD at the parallel market as the misery continues for the legal tender which grapples for strength against the greenback due to existing demand and supply mismatch.

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However, it was a positive outing at the I&E Window as there was an appreciation by (+0.14%) N0.58 w/w to close the week at N429.05/USD from N429.63/USD the previous week.

Thus, most participants maintained bids between N417/USD and N444/USD.

At the Interbank Foreign Exchange market, NGN/USD closed flat at N430.00/USD amid CBN’s weekly injections of USD210 million where 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 meantime, the Naira/USD exchange rate traded in a mixed bag as the 1M and 6M FX Forward Contracts weakened further by a marginal 0.01% and 0.06% respectively to close the week at N429.54/USD and N452.82/USD.

On the other hand, the 2M, 3M and 12M Forward Contracts increased in value by 3bps, 23bps and 22bps to close the week’s offering at N434.00/USD, N437.51/USD and N481.17/USD in that order.

Elsewhere, the Bonny light crude price declined 2.59% w/w to close the week at USD111.44 per barrel from USD108.63 per barrel in the previous week.

Next week, we expect the Naira to trade in a relatively calm manner band across all segments barring any significant market distortions as the CBN continues its weekly FX market interventions.

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Godwin Okafor
Godwin Okafor
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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