Naira Gains 0.2% at I&E as Turnover Rises to $738b

By Cowry Asset

In the just concluded week, the Nigerian Naira appreciated week-on-week (w-o-w) against the US Dollar at the Investors & Exporters Forex Window (I&E FXW) by 0.18 percent to close at N362 amid 51.54 percent w-o-w increase in turnover to $738 billion at the I&E FX Window as at Thursday, August 10, 2018.

However, the local currency remained unchanged against the US Dollar at the Bureau De Change (BDC) segment and the parallel market to close at N357/$ and N360/$ respectively as the Central Bank of Nigeria (CBN) sustained its special intervention.

Also, Naira/Dollar rate closed flat at the interbank foreign exchange market at N330/$ amid weekly injections by CBN of $210 million into the foreign exchange market via the Secondary Market Intervention Sales (SMIS): 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.

Meanwhile, most dated forward contracts at the interbank over-the-counter (OTC) segment appreciated – 1 month, 2 months 3 months and 6 months contracts gained 0.23 percent, 0.34 percent, 0.28 percent and 0.61 percent to close N364.73/$, N367.72/$, N370.93/$ and N381.83/$ respectively; however, spot rate lost 0.02 percent to close N306/$

Next week, we expect stability at the alternative forex market segments amid sustained CBN interventions therein.