Naira Gains 0.05% Against Dollar at I&E in One Week

By Modupe Gbadeyanka

The local currency performed fairly this week against the Dollar at the Investors’ and Exporters’ (I&E) foreign exchange window.

During the week, the Nigerian legal tender appreciated by 0.05 percent at the segment by the time transactions were brought to an end on Friday.

The Naira closed the week at N360.01k to the Dollar amid weekly injections by Central Bank of Nigeria (CBN) of $210 million into the forex market.

From the injection, the apex bank allocated $100 million to the Wholesale (SMIS) segment, $55 million to the Small and Medium Scale Enterprises, while $55 million was also given to the Invisibles segment to meet demand customers needing forex to pay bills abroad and others.

According to analysts at Cowry Asset, the Naira/Dollar rate remained unchanged at the interbank foreign exchange market at N330/$, N362/$ at the parallel market, and N360/$ at the Bureau De Change (BDCs) segment.

Meanwhile, all dated forward contracts at the interbank over-the-counter (OTC) segment appreciated — spot rate, 1 month, 2 months, 3 months and 6 months contracts fell by 0.02 percent, 0.07 percent, 0.13 percent, 0.23 percent and 0.40 percent to close N305.60/$, N363.73/$, N367.62/$, N371.41/$ and N385.55/$ respectively.

Next week, Cowry Asset expects stability in exchange rate amid further accretion to the external reserves as global oil prices retain its upbeat and CBN continues with the weekly intervention.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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