In the just concluded week, Naira strengthed against the USD at the Bureau De Change and Parallel ‘black’ markets by 1.40% and 0.80% to close at N499.00/USD and N502.00/USD respectively amid the apex bank’s announcement to increase USD liquidity in the forex market through the banks and BDCs.
However, Naira depreciated at the Investors & Exporters Window by 0.05% to close at N411.00/USD while 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 fell (Naira appreciated) for all of the foreign exchange forward contracts: 1 month, 2 months, 3 months, 6 months and 12 months exchange rates fell by 0.39%, 0.57%, 0.91%, 1.96% and 4.01% to close at N411.73/USD, N414.17/USD, N415.68/USD, N419.95/USD and N428.65/USD respectively.
Meanwhile, the spot rate remained flat at N379.00/USD.
In the new week, we expect Naira/USD to stabilize at most FX Windows amid CBN’s promise to increase USD liquidity.
Also, the increase in crude oil prices at the international market is expected to boost forex supply.