The naira at the parallel foreign exchange market depreciated by N9 or 1.21% week on week to close at N755/$1 from N746/$1 in the previous week on the back of increased pressure from dollar demand.
Also, at the investors’ and exporters’ FX window, the Naira depreciated against the United States’ dollar by N0.67 or 0.15% week on week to close at N463/$1 from N462.33/$1 the previous week as the hegemony of the dollar continues while players in the market kept bids between N462 and N469.
At the Interbank Foreign Exchange Forward Contracts market, the spot exchange rate remained unchanged closed at N462/$1.
Also, in our analysis of the Naira/USD exchange rate at the weekly Naira FX Forward Contracts Markets,
it was a mixed trade as the dollar reign across short-tenor forward contracts and the Naira reported appreciation at mid-long tenor forward contracts.
Consequently, the naira weakened by 0.74%, 0.39% w/w to close at N477.70/$1 and N500.38/$1 at the 1-month and 2-month tenors.
On the contrary, the naira gained strength by 0.09%, 0.01%, and 3.83% week on week to close at contract offer prices of N517.99/$1, 557.61/$1 and N574.74/$1 for the 3-Month, 6-Month and 12-Month tenors respectively.
In the oil market this week, prices are already on course to another weekly gains amid signs that the U.S will avoid a default on its debt while market sentiment is now beginning to shift gradually into the bullish region.
Thus, Brent Crude trade at $74.44 per barrel sliding southward over recession fears. However, on the home front, the Bonny Light crude price regained its positive weekly rally to gain 1.89% or ($1.42) week on week, to close at $76.66 per barrel from $75.24 per barrel in the previous week.
Next week, we expect the naira to trade in a relatively calm band across various market segment barring any market distortion and as the apex bank continues its weekly FX market intervention to defend the value of the naira.
