By Cowry Asset
Last week, the Naira lost ground against the US Dollar at the Investors & Exporters Forex Window (I&E FXW), week-on-week, by 1.38 percent to N367.16/$.
However, the local currency appreciated at Bureau De Change (BDC) market segment by 0.55 percent to N363/$.
Elsewhere, the Interbank and Parallel market segment remained unchanged at N325/$ and N368/$. This was amid injections by the CBN worth $195 million into the foreign exchange market of which $100 million was allocated to Wholesale (SMIS), $50 million was allocated to Small and Medium Scale Enterprises and $45 million was sold for invisibles.
Meanwhile, the weekly movements in most dated forward contracts at the interbank OTC segment suggested future depreciation of the Naira/$ exchange rate despite a slight increase in the foreign exchange reserves – external reserves increased week-to-date by 0.16 percent to $30.27 billion as at
Thursday, June 29, 2017.
The 1 month, 3 month, 6 months and 12 months contracts depreciated w-o-w by 0.05 percent, 0.07 percent, 0.09% and 20.85 percent to close at N310.49/$, N321.16/$, N339.39/$ and N373.18/$ respectively.
Also, the spot rate depreciated by 0.02 percent to N305.90/$ despite $7.5 million in intervention sales by CBN to banks.
In the current week, we expect stability at the alternative market segments, although subject to CBN’s level of intervention.
Adedapo Adesanya 
Modupe Gbadeyanka