In the just concluded week, Naira depreciated against the USD at the Bureau De Change (BDC) and parallel (“black”) markets by 3.04% and 2.13% respectively to close at N474/USD and N480/USD respectively.
However, the Naira appreciated at the Investors and Exporters Window by 0.04% to close at at N385.83/USD amid rising crude oil prices at the international market.
However, NGN/USD closed flat at N381/USD at the Interbank Foreign Exchange market amid weekly injections of USD210 million by CBN into the forex market: USD100 million was allocated to Wholesale Secondary Market Intervention Sales (SMIS), USD55 million was allocated to Small and Medium Scale Enterprises and USD55 million was sold for invisibles.
Elsewhere, the Naira/USD exchange rate appreciated for most of the foreign exchange forward contracts: 1 month, 2 months, 3 months and 6 months rates fell by 0.13%, 0.14%, 0.15% and 0.20% respectively to close at N385.59/USD, N385.78/USD, N386.08/USD and N386.11/USD respectively.
However, 12 months forward contract rose by 0.20% to close at N388.12/USD; while the spot rate closed flat at N381.00/USD.
In the new week, we expect Naira/USD to remain stable at the Investors and Exporters FX Window (I&E FXW) given the sustained rally in crude oil prices at the international market.