Naira Gains Against U.S Dollar at Most Forex Market Segments

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…In line with our expectations, Naira appreciated against the USD at the Bureau De Change and parallel (‘black’) markets by 2.54% and 2.52% to close at N460.00/USD and N465.00/ USD respectively amid much efforts by CBN to reduce pressure on the exchange rate, especially at the parallel market.

Also, Naira gained against the USD at the Investors and Exporters Window by 0.51% to close at N392.00/USD. However, NGN/USD closed flat at N380.69/USD at the Interbank Foreign Exchange marketamid 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 fell (Naira appreciated) for most of the foreign exchange forward contracts: 1 month, 2 months, 3 months, 6 months and 12 months rates fell by 0.01%, 0.27%, 0.28%, 0.35% and 0.59% respectively to close at N397.76/USD, N400.46/USD, N403.86/USD, N413.71/USD and N431.64/USD respectively.

However, the spot rate was flattish at N379.00/USD. In the new week, we expect Naira/USD to stabilze at most market segments, especially at the I&E FX Window as external reserves further increase amid relatively stabilized crude oil prices.

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