Dipo Olowookere
Last week, local currency closed steady against the Dollar in most foreign exchange market segments as demand was matched with supply.
Specifically, according to Cowry Asset, the Naira/Dollar exchange rate closed flat at the Interbank Foreign Exchange market, the Investors and Exporters FX Window, the Bureau De Change and parallel (black) market at N356.92/$, N360.75/$, N358/$ and N361/$ respectively.
This was amid the sustained weekly injections of $210 million by the Central Bank of Nigeria (CBN) into the foreign exchange market via the Secondary Market Intervention Sales (SMIS).
During the injection by the central bank, a total of $100 million was allocated to Wholesale SMIS, $55 million was allocated to Small and Medium Scale Enterprises and $55 million was sold for invisibles.
Meanwhile, the Naira/Dollar exchange rate rose (i.e. Naira lost) for most of the foreign exchange forward contracts – 1 month, 2 months, 3 months, 6 months and 12 months rates rose by 0.17 percent, 0.32 percent, 0.46 percent, 0.55 percent and 1.09 percent to close at N363.81/$, N367.14/$, N370.75/$, N381.94/$ and N405.09/$ respectively.
However, spot Naira/Dollar exchange rate closed flat at N306.95/$.
In the new week, Cowry Asset expects appreciation of the Naira against the Dollar across the market segments as CBN sustains its special interventions against the backdrop of rising external reserves.
