In the just concluded week at the open market, the local currency edged the United States dollar as it appreciated by N5 or 0.7% week on week to close at N746/USD from N751/USD in the previous week even as dollar demand took a calm in the face of scarcity crunch which continues to bite harder.
Also, at the investors’ and exporters’ FX window, the Naira appreciated slightly by N0.50 or 0.11% week on week to close at N461.33/USD from N461.83/USD despite the growing FX demand pressure on the naira.
A look at activities at the Interbank Foreign
Exchange Forward Contracts market, the spot
exchange rate remained unchanged closed at
N462/USD.
Also, in our analysis of the Naira/USD exchange rate in the weekly Naira FX Forward Contracts Markets, it was all green for the Dollar index across all forward contracts with appreciations reported for the 1-Month, 2- Month, 3-Month, 6-Month and 12-Month tenor contracts against the Naira by +0.5%, +0.32%, +0.51%, +1.00% and +2.36% week on week to close at contract offer prices of N467.87/USD, N475.74/USD, N484.34/USD, N511.25/USD and N561.79/USD respectively.
In the oil market this week, oil price oscillation signaled positive trade at USD74 per barrel on the back of US build-up of oil inventory and the mixed economic outlook and recovery in China.
However, on the home front, we saw the Bonny Light crude price react positively to factors playing in the oil market as it plummeted by 4.8% or (USD3.72) week on week, to close at USD73.96 per barrel (23/03) from USD77.68 per barrel last week.
Next week, we expect the naira to trade in a relatively calm band across various market segment barring any market distortion in the face of the Naira scarcity and as the apex bank continues its weekly FX market intervention to defend the value of the naira.
