Naira Weakens Further Across FX Segments as Buy-Pressure Heightens….


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.

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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.

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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