Naira Gains Against the US Dollar at I&E Forex Window

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In the just concluded week, the local currency appreciated at the Investors & Exporters Forex Window (I&E FXW) by 0.27% to close at N361.73.

However, the NGN/USD rate at the Interbank Foreign Exchange market was flattish at N357.10/USD amid weekly injections of USD210 million by CBN into the foreign exchange market via the Secondary Market Intervention Sales (SMIS) of which: USD100 million was allocated to Wholesale SMIS, USD55 million was allocated to Small and Medium Scale Enterprises and USD55 million was sold for invisibles.

Also, at the parallel (‘black’) market and Bureau De Change (BDC) market segments, Naira remained unchanged at N361/USD and N358/USD respectively. Meanwhile, the Naira/USD exchange rate fell further (i.e. Naira sustained gains) for most of the foreign exchange forward contracts – spot rate, 1 month, 2 months, 3 months, 6 months and 12 months rates moderated by 0.02%, 0.28%, 0.26%, 0.19%, 0.37% and 0.27% respectively to close at N306.70/USD, N364.54/USD, N367.65/USD, N371.07/USD, N382.80/USD and N412.24/USD respectively.

In the new week, we expect stability in the Naira/USD rate in most market segements, especially at the BDC Segment, as CBN sustains its special interventions.

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Obodo Ejiroghene Lucky [Chief Economist] Mr. Ejiroghene Obodo is an economist with over 15 years in Journalism, which cuts across Research and Data analysis. Mr Obodo, a graduate of Columbia University, New York City, with a Degree Journalism Graduate School Field Of Study Citi Journalism Seminar Ejiro was the Online Editor at BusinessDay Media, where he oversees the online editorial department. Proir to this Mr. Ejiroghene Obodo, also known as Lucky, served as a Senior Research Analyst at BusinessDay Research and Intelligence Unit. Prior to this, he was an Analyst at the firm. Ejiro has won series of International awards which includes the most coveted awards Citi Journalistic Award for 2013 See his professional profile listed on Bloomberg

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