In the just concluded week, the local currency depreciated at the Investors & Exporters Forex Window (I&E FXW) by 0.07% to close at N360.68 despite the 1.68% week-on-week rise in external reserves to USD44.14 as at Tuesday, March 26, 2019.
However, at the Interbank Foreign Exchange market NGN/USD rate remained unchanged at N355.78/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, Naira was flattish against US dollar at the Bureau De Change (BDC) and parallel (‘black’) market segments at N360/USD and N357/USD respectively. Meanwhile, the Naira/USD exchange rate rose (i.e. Naira lost) for most of the foreign exchange forward contracts – spot market, 1 month, 2 months, 6 months and 12 months rates increased by 0.02%, 0.21%, 0.19%, 0.27% and 0.70% respectively to close at N306.95/USD, N363.54/USD, N366.57/USD, N382.56/USD and N406.15/USD respectively; however, 3 months rate was flattish at N369.78/USD.
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.