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    Naira Strengthens against the USD at the BDC and Parallel Markets…

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    Naija247news Editorial Teamhttps://www.naija247news.com/
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    In the just concluded week, Naira appreciated against the greenback at the Bureau De Change and Parallel markets by 0.40% and 0.40% to close at N500.00/USD and N504.00/USD respectively.

    We believe the Eid-El-Kabir
    holidays/short trading played a part in this amid lower dollar demand. However, the Investors & Exporters market moved the opposite direction after a 27bps weakening to close at N411.50/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 appreciated for most of the foreign exchange forward contracts: 1 month, 2 months, 3 months, 6 months and 12 months exchange rates declined by 0.08%, 0.09%, 0.13%, 0.20% and 0.16% to close at N413.01/USD, N414.66/USD, N416.55/USD, N423.20/USD and N436.29/USD respectively. Meanwhile, the spot rate remained flat at N379.00/USD.

    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.

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