In the just concluded week, Naira further
depreciated against the greenback by 0.49% to N414.90/USD at the Investors and Exporters FX window amid sustained demand pressure.
Notably, the USD4 billion Eurobonds proceed appeared not to have had positive impact on the foreign exchange.
Also, the Naira/USD exchange rate rose (Naira depreciated) at the Bureau De Change and Parallel markets by 1.79% and 0.35% to close at N570.00/USD and N572.00/USD respectively.
Meanwhile, NGN/USD 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 rose (Naira depreciated) for most of the foreign exchange forward contracts: 2 months, 3 months, 6 months and 12 months contracts increased by 0.16%, 0.31%, 0.42% and 1.17% to close at N419.14/USD, N422.22/USD, N431.47/USD and N450.61/USD respectively.
However, spot rate was flat at N380.69/USD while 1 month forward contract appreciated by 0.04% to close at N416.07/USD – reflecting positive market sentiment in the short term.
In the new week, we expect Naira to appreciate against the USD as the USD4 billion boosts the supply side of the market.
Now, CBN has some firepower needed to defend the Naira from plunging furthe