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.

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