Naira Loses at Parallel Market, Gains at I&E Window

By Cowry Asset

In the just concluded week, the local currency depreciated against the USD at the Bureau De Change (BDC) and parallel (black) market segments by 0.28 percent and 0.27 percent to close N362/$ and N365/$ respectively.

However, the Naira further appreciated at the Investors & Exporters Forex Window (I&E FXW) by 0.19 percent to close at N364.54 amid sustained increase in dollar supply.

Also, the local currency remained flattish at the Interbank Foreign Exchange market by to close at N359.24/$ amid weekly injections of $210 million by the Central Bank of Nigeria (CBN) 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, the Naira/Dollar exchange rate fell (i.e. Naira appreciated) for most of the foreign exchange forward contracts – 1 month, 2 months, 3 months, 6 months and 1 year FX rate fell by 0.15 percent, 0.23 percent, 0.41 percent, 0.51 percent and 0.14 percent respectively to close at 368.52/$, 371.95/$, 374.75/$, 385.08/$ and 414.67/$ respectively; however, spot rate rose (i.e. Naira depreciated) by 0.02 percent to close at N306.95/$.