By Dipo Olowookere
Last week, the local currency appreciated by 0.28 percent at the Bureau De Change (BDC) segment to close at N358 on sustained Dollar sales by the apex bank to BDCs at $75,000 operator.
However, the Naira/Dollar exchange rate closed flat at the interbank segment of the foreign exchange market as well as the black market at N356.92/$ and N361/$ respectively amid sustained weekly injections of $210 million by CBN into the foreign exchange market via the Secondary Market Intervention Sales (SMIS).
During this injection, the central bank allocated $100 million to Wholesale SMIS, $55 million was allotted to Small and Medium Scale Enterprises and another $55 million was sold for invisibles, which caters for medicals, school fees, travel allowances and others.
According to Cowry Asset in its weekly report, Naira depreciated against the Dollar at the Investors & Exporters forex window by 0.10 percent to N36.74/$.
Meanwhile, the Naira/Dollar exchange rate rose (i.e. Naira lost) for most of the foreign exchange forward contracts – spot rate, 1 month, 2 months, 6 months and 12 months rates rose by 0.02 percent, 0.09 percent, 0.04 percent, 0.21 percent and 0.76 percent to close at N306.95/$, N363.21/$, N365.98/$, N379.85/$ and N400.72/$ respectively.
However, Naira/Dollar exchange rate for 3 months forward contract fell (i.e. Naira gained) by 0.05 percent to close at N369.05/$.
“In the new week, we expect appreciation of the Naira against the Dollar across the market segments as CBN sustains its special interventions against the backdrop of rising external reserves,” Cowry Asset said.
Adedapo Adesanya 
Modupe Gbadeyanka