Dipo Olowookere
By Cowry Asset
In the just concluded week, the Central Bank of Nigeria (CBN) continued its intervention in various segments of the interbank foreign exchange market with the sale of $195 million (same as the preceding week).
The wholesale segment of the market received $100 million, the Small and Medium Enterprises (SMEs) segment was boosted with $50 million while the Invisibles segment received $45 million.
Meanwhile, as at Thursday, October 19, 2017, Nigeria’s foreign reserve stood at $33.36 billion.
Consequently, the Interbank market (NIFEX) exchange rates remained unchanged at N330/USD.
Similarly, the Naira remained unchanged week-on-week (w-o-w) at the parallel market. However, the Naira gained 0.03% to close at 360.32 at the I&E FX window while it lost by 0.83% at the BDC market to close at N363.
In the forwards market, the spot remained unchanged at N305.50/USD while the 3-month, 6-month and 12-month forward contracts appreciated w-o-w by 0.09%, 0.08% and 0.84% to N378.69/USD, N398.62/USD and N427.97/USD respectively.
This week, 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.
