In the just concluded week, the Naira/USD
exchange rate moderated (Naira appreciated) by 0.29% at the Investors and Exporters FX window to close at N414.73/USD amid increased supply of the greenback.
However, Naira depreciated against the greenback by 0.01% to close at N565.55/USD at the Parallel market.
The NGN/USD closed flat at
N430.00/USD at the Interbank Foreign
Exchange market amid its weekly injections of USD210 million: 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.
Meanwhile, the Naira/USD exchange rate further rose (Naira depreciated further) for most of the foreign exchange forward contract.
Hence, 1 month, 3 months, 6 months and 12 months contracts increased by 0.03%, 0.03%, 0.03% and 0.03% to close at N416.07/USD, N421.33/USD, N430.47/USD and N448.13/USD respectively.
However, 2 months contract appreciated by 0.01% to close at N418.46/USD.
In the new week, we expect Naira to strengthen slightly against the USD amid relatively high crude oil prices and external reserves.