Naira Gains 0.28% at Black Market, Loses 0.09% at I&E

By Cowry Asset

During this trading week, the local currency appreciated week-on-week (w-o-w) against the Dollar in most foreign exchange market segments 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.

The Naira appreciated at the Bureau De Change and the parallel (black) market segments by 0.28 percent each to close at N359/$ and N362/$ respectively while it closed flat against the Dollar at the interbank foreign exchange market at N330/$ on successfully raised $2.5 billion Eurobond.

However, at the Investors & Exporters Forex Window (I&E FXW) segment the Naira depreciated by 0.09 percent to close at N360.70.

Meanwhile, most dated forward contracts at the interbank over-the-counter (OTC) segment depreciated; 1 month, 2 months, 3 months and 6 months contracts depreciated by 0.13 percent, 0.20 percent, 0.31 percent and 0.34 percent to close at N364.82/$, N369.14/$, N373.60/$ and 389.04/$ respectively.

However, spot rate was flattish at 305.95.

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.

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. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

more recommended stories

%d bloggers like this: