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.
Adedapo Adesanya