By Dipo Olowookere
The performance of the local currency against the Dollar at the foreign exchange (forex) market last week was mixed.
According to analysts at Cowry Asset, while the Naira appreciated by 0.01 percent against the Dollar at the Investors & Exporters (I&E) forex segment in the week, it depreciated by 0.13 percent at the interbank market.
At the close of the week, the local currency settled at N360.29/$ at the investors window, while it quoted at N356.26/$.
The performance of the Naira came on the back of the weekly injections of $210 million into the forex market by the Central Bank of Nigeria (CBN) via the Secondary Market Intervention Sales (SMIS).
During the exercise, the apex bank released the sum of $100 million to Wholesale SMIS and $55 million each to the Small and Medium Scale Enterprises as well as the invisibles.
It was gathered that at both the Bureau De Change (BDC) and the parallel (black) market segments, the local currency was flattish, closing at N358/$ and N360/$ respectively.
Meanwhile, the Naira/Dollar exchange rate appreciated for most of the foreign exchange forward contracts – Spot rate, 1 month, 2 months, 3 months and 12 months rates eased by 0.02 percent, 0.02 percent, 0.06 percent, 0.11 percent and 0.26 percent to close at N306.95/$, N363.03/$, N365.78/$, N368.54/$ and N402.84/$ respectively.
On the flip side, 6 months rate increased by 0.05 percent to close at N381.19/$.
“In the new week, we expect stability in the Naira/USD rate in most market segments, especially at the BDC segment, as CBN sustains its special interventions,” those at Cowry Asset said.
Adedapo Adesanya