Naira Devalues by 0.03% at Interbank Despite Supply of $210m

May 25, 2019
naira-dollar-forex

By Dipo Olowookere

The Nigerian Naira weakened against the United States Dollar this week by 0.03 percent at the interbank segment of the foreign exchange market.

The local currency depreciated to N356.92 per Dollar during week despite the $210 million supplied to the market by the Central Bank of Nigeria (CBN) to sustain liquidity.

From the $210 million sold to the forex traders at the Secondary Market Intervention Sales (SMIS), the apex bank allotted $100 million Wholesale SMIS, while $55 million was given each to Small and Medium Scale Enterprises and invisibles.

However, at the Investors & Exporters forex window, the local currency further appreciated by 0.03 percent to close N360.39.

At both the Bureau De Change (BDC) and the parallel market segments, the Naira was flat against the US dollar at N359 per Dollar and N361 to a Dollar respectively.

Meanwhile, the Naira gained for most of the foreign exchange forward contracts; spot rate, 1 month, 2 months, 6 months and 12 months’ rates fell by 0.02 percent, 0.13 percent, 0.10 percent, 0.43 percent and 1.29 percent to close at N306.90/$, N362.90/$, N365.84/$, N379.04/$ and N397.70/$ respectively.

However, Naira depreciated by 0.06 percent to close at N369.24/$.

According to analysts at Cowry Asset, in the new week, they “expect appreciation of the Naira against the Dollar in most market segments, especially at the I&E segment as CBN sustains its special interventions.”

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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