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Naira Moderates at Forex Market Segments

By Cowry Asset

In the just concluded week, the Central Bank of Nigeria (CBN) intervened in various segments of the interbank foreign exchange market with the sale of $195 million.

Furthermore, as at Tuesday, October 3, 2017, Nigeria’s foreign reserve stood at $32.74 billion.

Consequently, the Interbank market (NIFEX) exchange rates remained unchanged at N330/Dollar.

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In other segments, the Naira appreciated week-on-week (w-o-w) at the the Bureau De Change and Parallel market segments by 0.55% each to N360/Dollar and N363/Dollar respectively.

However, at the I&E FX Windows, the Naira depreciated by 0.07% to N360.64/USD.

In the forwards market, the spot and 3months contracts appreciated w-o-w by 0.03% and 0.12% to N305.65/USD, N378.44/USD respectively.

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However, the 6 months and the 12months forward contracts depreciated by 0.21% and 0.96% to N398.37/USD and N431.92/USD respectively.

This week, amid relatively high global crude oil prices which should result in further build-up in foreign reserves, in addition to CBN’s continued intervention in the various segments of the interbank foreign exchange market, we expect further stability of the Naira/Dollar exchange rate.

ALSO READ  Naira Gains 0.28% at Black Market amid 0.38% Drop in Foreign Reserves in One Week

 

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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