By Dipo Olowookere
The local currency put up a weak performance at the foreign exchange (forex) market last week amid declining external reserves that fell further by 1.30 percent to $43.35 billion as at Thursday, October 11, 2018.
The loss recorded by the Naira was almost across all segments of the forex market.
Specifically, the Naira/Dollar rate depreciated at the Investors & Exporters (I&E) forex segment by 0.08 percent to close at N364.12/$.
Also, the local currency lost 0.33 percent week-on-week (w-o-w) at the interbank foreign exchange market to quote at N362.52/$ despite the weekly injections of $210 million by the Central Bank of Nigeria (CBN) into the market via the Secondary Market Intervention Sales (SMIS).
A breakdown of the intervention showed that $100 million was allocated to Wholesale SMIS, $55 million was allocated to Small and Medium Scale Enterprises and $55 million was sold for invisibles.
The exchange rate also depreciated at both the Bureau De Change (BDC) segment and the parallel market by 0.28 percent each to close at N359/$ and N362/$ respectively despite CBN’s sustained weekly intervention.
Meanwhile, according to Cowry Asset, most dated foreign exchange rate forward contracts at the interbank over-the-counter (OTC) segment depreciated.
Specifically, the 1 month, 2 months and 3 months contracts lost 0.08 percent, 0.06 percent and 0.02 percent to close N367.71/$, N371.26/$ and N374.73/$ respectively.
However, the 6-month contracts gained by 0.02 percent to close for the week at N386.21/$.
more recommended stories
Local Stocks Sustain Growth by 0.64%
By Dipo Olowookere The Nigerian Stock.
6-Month T-Bills Yields Gain 1.23% Amid Further Absence of OMO Sale
By Dipo Olowookere The Central Bank.
TerraPay Partners Pan Asia Bank to Expand Footprint in Asia
World’s first mobile payments switch for.
Asian Equities Rise on Encouraging US Earnings
By Investors Hub Asian stocks moved.