In the just concluded week, Naira appreciated against the USD at the Investors & Exporters Window by 0.33% to close at N410.38/USD even as the external reserves rose marginally w-o-w by 0.01% to close at USD33.10 billion as at July 15, 2021.
However, Naira depreciated at the Bureau De Change and Parallel market by 0.40% and 0.20% to close at N502/USD and N506.00/USD respectively.
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 of the foreign exchange forward contracts: 1 months, 2 months and 3 months exchange rates fell by 0.05%, 0.12% and 0.13% to close at N413.32/USD, N415.04/USD and N417.10/USD respectively.
However, 6months and 12 months rate depreciated by 0.08% and 0.34% to N424.04/USD and N437.00/USD. Meanwhile, the spot rate remained flat at N379.00/USD.
In the new week, we expect Naira to weaken against the greenback at most FX Windows as CBN’s capacity to defend the Naira weakens amid plunging external reserves.