In line with our expectations, Naira appreciated against the greenback by 1.65% at the Parallel market to close at N567.50.00/USD.
However, the Naira/USD exchange rate further rose (Naira depreciated) by 0.22% to close at N414.30/USD at the Investors and Exporters FX window despite the 6.71% w-o-w accretion to the external reserves which closed at USD37.99 billion as at Wednesday, October 6, 2021.
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 increased (Naira depreciated) for most of the foreign exchange forward contracts: 1 month, 2 months, 3 months, 6 months and 12 months contracts rose by 0.04%, 0.11%, 0.19%, 0.32% and 0.43% to close at N415.60/USD, N418.14/USD, N421.01/USD, N429.44/USD and N445.68/USD respectively. However, spot rate was flat at N380.69/USD.
In the new week, we expect Naira to stabilise against the USD as crude oil price remain high at the international crude oil market – Bonny light crude, Nigeria’s sweet crude trades above USD81 per barrel.