Naira/Dollar Rate Closes Flat Across Market Segments amid Higher Crude Prices

By Cowry Asset

Last week, the local currency was stable week-on-week (w-o-w) against the U.S. dollar at the Investors & Exporters Forex Window (I&E FXW) to close at N360.41/USD amid the weekly injections by Central Bank of Nigeria (CBN) of $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.

Similarly, the Naira/$ rate remained unchanged at the interbank foreign exchange market, the parallel (‘black’) market and the Bureau De Change segments at N330/$, N363/$ and N360/$ respectively. Meanwhile, most dated forward contracts at the interbank over-the-counter (OTC) segment depreciated – spot rate, 1 month, 2 months, 3 months and 6 months contracts rose by 0.02%, 0.06%, 0.17%, 0.34% and 1.05% to close N305.65/$, N363.40/$, N366.86/$, N370.66/$ and N383.72/$ respectively.

This week, we expect stability in exchange rate as Nigeria’s Bonny light grade oil price retain its $70 per barrel levels and as CBN continues with the weekly intervention.