In the just concluded week, Naira gained against the USD at the Bereau De Change (BDC) and parallel (“black”) markets by 4.12% and 4.04% respectively to close at N465/USD and N475/USD respectively amid CBN’s new policy on foreign remittances.
However, the Naira depreciated at the Investors and Exporters Window by 1.22% to close at at N395.00/USD.
Also, NGN/USD depreciated by 0.45% to close at N380.69/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 depreciated further for most of the foreign exchange forward contracts: 1 month, 2 months, 3 months and 6 months rates rose by 1.87%, 3.13%, 4.09%, 7.02% and 12.29% respectively to close at N397.56/USD, N402.54/USD, N406.35/USD, N417.98 and N439.56/USD respectively.
However, the spot rate was flattish at N379.00/USD.
In the new week, we expect Naira/USD to further appreciate at most market segments, especially at the Bureau De Change and parallel (“black”) markets as the new policy from CBN on foreign remittances becomes effective.