In the just concluded week, Naira weakened
against the USD at the Investors & Exporters and Bureau De Change window by 0.01% and 0.40% to close at N410.80/USD and N499/USD respectively even as the FX reserves moderated w-o-w by 0.47% to close at USD34.00 billion as at June 10, 2021.
However, Naira closed flat at the Parallel “black” market at N502.00/USD.
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 depreciated for all of the foreign exchange forward contracts: 1 month, 2 months, 3 months, 6 months and 12 months exchange rates fell by 0.05%, 0.19%, 0.19%, 0.23 and 0.33% to close at N413.33/USD, N416.54/USD, N419.51/USD, N428.36/USD and N446.56/USD respectively.
However, the spot rate remained flat at N379.00/USD.
In the new week, we expect Naira/USD to stabilize at most FX Windows as crude oil prices at the international market remains relatively high