By Cowry Asset
In the just concluded week, the Central Bank of Nigeria (CBN) injected $195 million into the interbank foreign exchange market.
In the wholesale segment of the market of the interbank market, CBN auctioned $100 million, $50 million went to the Small and Medium Enterprises (SMEs) and the Invisibles segment received $45 million.
Despite the inflows, the Naira depreciated week-on-week (w-o-w) at the Interbank and Bureau De
Change market segments by 3.13% and 0.27% to N330/USD and N367/USD respectively.
However, the Naira strengthened at the Investors & Exporters Forex Window (I&E FXW) by N0.42 to N359.56/USD.
At the parallel market, the local currency remained stable w-o-w. Dated forward contracts at the interbank OTC segment suggested likely appreciation of the Naira amid relatively high foreign exchange reserves – external reserves stood at USD31.55 billion as at Friday, August 18, 2017.
The spot and 3 months forward contracts depreciated w-o-w by 0.03% and 0.23% to N305.80/USD N378.44/USD respectively.
The 6 months and 12 months however appreciated w-o-w by 0.03% and 0.01% to N398.52/USD and
This week, we expect CBN’s continued intervention in the interbank segment, increasing investor confidence and consistent build-up in external reserves to lead to further stability of the Naira/USD exchange rate.
more recommended stories
Lagos Grants 20% Tax Credit to COVID-19 Donors
By Dipo Olowookere The Lagos State.
CBN Expects Inflation to Trend Downward in Q4 2020
By Dipo Olowookere The Central Bank.
OPEC Basket Crude Trades at $43.38 Ahead of Meeting
By Adedapo Adesanya The price of.
BDC Operators Want Inclusion in Remittances Market
By Adedapo Adesanya The Association of.
LEKOIL, Schlumberger Agree to Drill Oil at Otakikpo
By Dipo Olowookere A definitive agreement.
How Nigeria Can Avert Looming Recession—Minister
By Dipo Olowookere The Minister of.
Nigeria Yet to Comply with OPEC+ Deal—Minister
By Adedapo Adesanya The Minister of.
NASD OTC Exchange Opens Week with 0.44% Growth
By Adedapo Adesanya The new week.