Naira/Dollar Exchange Rates Decline as Demand for Forex Rises

naira depreciate

By Cowry Asset

In the just concluded week, the Naira/Dollar exchange rate steadied week-on-week at the interbank market (NIFEX) while the Naira appreciated at the I&E Foreign Exchange Window by N0.04 to N360.27/$ as at Thursday.

This was amid injections by the CBN worth $210 million into the foreign exchange market of which $100 million was allocated to Wholesale (SMIS), $55 million was allocated to Small and Medium Scale Enterprises and $55 million was sold for invisibles.

The local currency however depreciated at both the Bureau De Change and Parallel market segments by N0.28 each to close at N361/$ and N364/$ respectively on the back of increased forex demand.

Meanwhile, dated forward contracts at the interbank OTC segment depreciated despite increase in the foreign exchange reserves – external reserves increased week-on-week by 0.37% to $34.46 billion as at Wednesday, November 22, 2017.

The 1 month, 2 months, 3 months and 6 months contracts appreciated w-o-w by 0.07%, 0.16%, 0.23% and 0.57% to close at N365.52/$, N371.29/$, N377.60/$ and N399.26/$ respectively.

This week, we retain our stable outlook for the exchange rate amid sustained stability in global crude oil prices which should result in further build-up in foreign reserves as well as CBN‟s continued intervention in the various segments of the interbank foreign exchange market.

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

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