In the just concluded week, the availability of the new banknote fiasco took a different turn as banking institutions and businesses reject the old banknotes.
This comes as the deadline day set by the apex bank draws closer amidst the demand and supply mismatch.
Consequently, FX backlog continues to pile while manufacturers, importers and travelers turn attention to the open market in the search for the greenback.
At the investors’ and exporters’ FX window, the Naira skid by N0.25 or 0.05% week on week to close at N461.75/USD from N461.50/USD in the previous week despite the growing FX pressure on the naira and the newly redesigned currency circulation battle.
On the other hand, the Naira gained strength against the dollar at the parallel market as the naira value appreciated by 0.27% or N2 week on week to N748/USD from N750/USD last week.
Thus, market players maintained bids between N460/USD and N465/USD at the I&E segment while in the open market, bids ranged between N745/USD and N752/USD.
A look at activities at the Interbank Foreign Exchange Forward Contracts market, the spot exchange rate remained unchained from the previous week as it closed the week at N445/USD from last week.
Also, in our analysis of the Naira/USD exchange rate in the Naira FX Forward Contracts Markets, the trend across all forward contracts tenors depreciated by 0.03%, 0.48%, 0.47%, 1.21% and 0.23% week on week to close at contract offer prices of N479.76/USD, N487.37/USD, N488.83/USD, N506.47/USD and N532.70/USD respectively.
In the oil market this week, Oil price oscillation was nonstop as it traded at above $88 per barrel as Russia and Ukraine war enters a new level in the midst of recovery in China economy and increasing recession fears and just as the geopolitical tension, high interest rate and inflation across the globe continue to threaten the world.
On the home front, we saw the Bonny light crude price rally in the oil market by 1.41% or (USD1.22) week on week to close at USD87.69 per barrel from USD86.47 per barrel
As the deadline for deposition of old banknotes inch closer, demand pressure is expected to stay unabating following the limited supply of the local currency as we transcend gradually into the cashless economy while we stay on the look for the multiplier effect of the cashless policy across all facets of the economy