Naira Soars at Most Market Segments, Falls at I&E FXW

By Cowry Asset

In the just concluded week, the Naira appreciated against the US Dollar at both the parallel (black) market and the Bureau De Change (BDC) segments by 0.27 percent and 0.28 percent to N363.00/$ and N361/$ respectively on a week-on-week (w-o-w) basis.

This was amid weekly injections by the Central Bank of Nigeria (CBN) worth $210 million into the foreign exchange market of which $100 million was allocated to Wholesale (SMIS), $55 million was allocated to Small and Medium Scale Enterprises and $55 million was sold for invisibles.

However, the Naira depreciated at the Investors & Exporters Forex Window (I&E FXW) segment by 0.1 0 percent to N360.70 while it closed flat against the US Dollar at the interbank foreign exchange market segment at N330/$.

Meanwhile, dated forward contracts at the interbank over-the-counter (OTC) segment mostly depreciated despite increase in the foreign exchange reserves-external reserves increased week-on-week by 0.73 percent to $40.62 billion – spot rate, 1 month, 2 months, 3 months and 6 months contracts depreciated by 0.03 percent, 0.10 percent, 0.07 percent, 0.03 percent and 0.28 percent to close at N305.75/$, N364.49/$, N368.43/$, N372.49/$ and 386.64/$ respectively.

Next week, we expect stability in the Naira as global crude oil prices retains its upbeat which should result in further build-up in foreign reserve.