In the just concluded week, Naira strengthened against the USD at the Investors & Exporters Window by 0.17% to close at N410.80/USD even as the external reserves gained 0.067% w-o-w to close at USD33.5 billion.
However, the market moved in the opposite direction at the Bureau De Change and Parallel markets as Naira depreciated by 0.59% and 0.98% to close at N508.00/USD and N515.00/USD respectively.
It appears forex users are beginning to source for FX at the alternative market amid perceived inability of banks to meet their demands.
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 fell (Naira appreciated) for most of the foreign exchange forward contracts: 1 month, 2 months, 3 months, 6 months and 12 months exchange rates fell by 0.03%, 0.13%, 0.11%, 0.10% and 0.04% to close at N412.22/USD, N413.47/USD, N415.27/USD, N421.65/USD and N434.91/USD respectively. However, the spot rate remained flat at N379.00/USD.
In the new week, we expect Naira to stabilize against the greenback at most FX segments amid increased accretion to the external reserves and expected allocations of USD to the deposit money banks who have been mandated to service USD demands of international travellers.