In the just concluded week, Naira appreciated against the USD at the Bureau De Change as well as the parallel (“black”) markets by 1.74% and 1.72% respectively to close at N452/USD and N457/USD respectively.
However, NGN/USD closed flat at N381/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.
The Naira depreciated against the USD at the Investors and Exporters FX Window (I&E FXW) by 0.01% to close at N385.83/USD.
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 rates fell by 0.03%, 0.05%, 0.07%, 0.23% and 0.55% respectively to close at N386.39/USD, N387.00/USD, N387.65/USD, N390.90/USD and N397.39/USD respectively. However, spot rate closed flat at N381.00/USD.
In the new week, we expect Naira/USD to remain stable at the Bureau De Change market amid sustained intervention by CBN.
We also expect appreciation at the Investors and Exporters FX Window (I&E FXW) given the relative stability in crude oil prices at the international market.