In the just concluded week, NGN/USD rate fell (i.e. Naira appreciated) at most foreign exchange market segments. Specifically, the NGN/USD exchange rate fell at the Investors and Exporters FX Window (I&E FXW) as well as the Bureau De Change market by 0.01% and 0.28% respectively to close at N362.04/USD and N357.00/USD respectively. Similarly, the Naira gained against the US dollar to close at N358.02/USD at the Interbank Foreign Exchange market 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. However, NGN/USD exchange rate remained unchanged at the parallel (“black”) markets at N360.00/USD. Meanwhile, the Naira/USD exchange rate fell (i.e. Naira appreciated) for most of the foreign exchange forward contracts – 1 month, 2 months, 3 months, 6 months and 12 months rates fell by 0.06%, 0.09%, 0.10%, 0.37% and 0.09% to close at N365.33/USD, N368.70/USD, N372.24/USD, N383.02/USD and N411.55/USD respectively. However, spot rate was flat at N306.90/USD. In the new week, we expect appreciation of the Naira against the USD across the market segements amid seemingly renewed renewed interest by foreign porfolio investors in local financial assets.
Naira spot rate flat at N306.90/USD, Gains at Most Market Segment…