Naira to Remain Stable at Most Market Segments This Week

By Dipo Olowookere

Last week, the local currency closed flat against the greenback at the parallel market and the Bureau

De Change segments at N362/$ and N360/$ respectively on sustained special intervention by Central Bank of Nigeria (CBN).

Also, the Naira/Dollar rate remained unchanged at the interbank foreign exchange market at N330/$ amid weekly injections by the apex bank of $210 million into the foreign exchange market.

A breakdown of the injection showed that $100 million was allocated to Wholesale (SMIS), $55 million was allocated to Small and Medium Scale Enterprises and $55 million was sold for invisibles.

However, at the Investors & Exporters Forex Window (I&E FXW), the local currency depreciated week-on-week (w-o-w) against the Dollar by 0.04 percent to close N361.07 amid 50.86 percent week to date decrease in turnover to $619.06 million at the I&E FXW as at Wednesday, June 13, 2018.

Meanwhile, most dated forward contracts at the interbank over-the-counter (OTC) segment depreciated – 1 month, 2 months, 3 months and 6 months contracts lost 0.10 percent, 0.16 percent, 0.21 percent and 0.79 percent to close N364.70/$, N368.37/$, N371.95/$ and N385.61/$ respectively; however, spot rate, contracts gained 0.03 percent to close N305.85/$.

According to analysts at Cowry Asset, stability is expected this week in the exchange rate at most market segments as CBN continues its intervention coupled with increased dollar liquidity at the BDC segment.