Naira Falls at Forex Market Segments Despite CBN $250m Injection

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By Cowry Asset

During last week’s trading periods, the Central Bank of Nigeria (CBN) injected $250 million into various segments of the interbank foreign exchange market.

The wholesale segment was offered $100 million, the Small and Medium Enterprises (SMEs) window received $80 million while the Invisibles segment received $70 million.

The interbank market (NIFEX) exchange rates remained unchanged at N330/$.

In other segments, the Naira depreciated week-on-week (w-o-w) at the I&E FX Window, Bureau De Change (BDC) segment and parallel market by 0.18 percent, 0.55 percent and 1.10 percent to N360.36, N365 and N369 respectively.

In the forwards market, the spot contract remained unchanged w-o-w at N305.95/$.

The 12-month forwards contract depreciated by 0.64 percent to N398.20.

However, the 3-month and 12-month forward contracts appreciated w-o-w by 0.35 percent and 1.13 percent to N377.31/$ and N430.36 respectively.

This week, we expect further stability of the Naira/$ exchange rate amid CBN’s continued intervention in the various segments of the interbank foreign exchange market and consistent build-up in external reserves.

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