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Naira Gains 0.06% at I&E Window, Weakens by 0.28% ar Black Market

By Cowry Asset

Last week, the local currency appreciated week-on-week (w-o-w) against the Dollar at the Investors & Exporters Forex Window (I&E FXW) by 0.06 percent to close N360.85 amid 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.

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However, the local currency weakened against the Dollar at the parallel (black) market and the Bureau De Change segments by 0.28 percent each to close N364/$ and N362/$ respectively while the Naira/Dollar rate remained unchanged at the interbank foreign exchange market at N330/$.

Meanwhile, most dated forward contracts at the interbank over-the-counter (OTC) segment appreciated – 1 month, 2 months, 3 months contracts strengthened by 0.13 percent, 0.14 percent and 0.09 percent to close N364.29/$, N368.13/$ and N372.30/$ respectively; however, spot rate and 6 months contracts weakened by 0.02 percent and 0.10 percent to close N305.85/$ and N386.25/$ respectively.

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This week, we expect depreciation in the exchange rate at the I&E FXW as 0.17 percent w-o-w decrease in the external reserves to $47.79 in the concluded week showed pressure on the green back.

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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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