Naira Gains 0.28% at Parallel, BDC Markets

By Modupe Gbadeyanka

The local currency appreciated last week against the Dollar across the various segments of the foreign exchange (forex) market.

At the parallel market, the Naira gained 0.28 percent against the Greenback to close at N360/$, while it also went up by the same margin at the Bureau De Change (BDC) market to finish at N358/$.

At the Investors and Exporters window, the local currency grew in strength marginally by 0.01 percent to settle at N360.79/$.

However, at the interbank segment of the market, the Naira was flat, closing at N357.52/$ amid sustained weekly injections of $210 million by Central Bank of Nigeria (CBN) into the forex market via the Secondary Market Intervention Sales (SMIS).

In the week, the apex bank allotted $100 million to Wholesale SMIS, $55 million was allocated to Small and Medium Scale Enterprises and another $55 million was given to the invisibles segment of the market.

According to analysts at Cowry Asset, the Naira/Dollar exchange rate fell for most of the foreign exchange forward contracts; one month, 2 months, 3 months, 6 months and 12 months rates rose by 0.07 percent, 0.18 percent, 0.32 percent, 0.65 percent and 0.49 percent to close at N363.31/$, N365.93/$, N368.70/$, N378.54/$ and N401.72/$ respectively.

However, spot rate rose (i.e. Naira lost) by 0.02 percent to close at N307.00/USD.

“In the new week, we expect appreciation of the Naira against the USD across the market segments as CBN sustains its special interventions against the backdrop of rising external reserves,” Cowry Asset said.