In the just concluded week, Naira strengthened against the USD at the Bureau De Change and Parallel “black” market by 0.42% and 0.41% to close at N478.00/USD and N483.00/USD respectively.
However, the Naira depreciated at the Investors and Exporters window by 0.08% to close at N410.33/USD.
During the course of the week, CBN extended indefinitely its “Naira 4 Dollar scheme’ for diaspora remittances which was initially scheduled to end on May 8, 2021.
Despite the incentive provided, Naira has
depreciated further against the USD at the black market as NGN/USD exchange rate rose to N483/USD (from N480/USD when the policy was first announced).
Meanwhile, NGN/USD exchange rate closed flat 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 appreciated for most the foreign exchange forward contracts: 2 months, 3 months, 6 months and 12 months exchange rates fell by 0.05%, 0.07%, 0.08%, and 0.16% to close at N415.77/USD, N418.51/USD, N427.48/USD and N445.47/USD respectively.
However, 1 month rate rose by 0.03% to close at N412.97/USD while the spot rate remained flat at N379.00/USD.
In the new week, we expect Naira/USD to stabilize at most FX Windows given the possibility of increase in crude oil price amid ease in lockdowns in the United States and some countries in Europe – about 40% of US adults have been vaccinated.