Naira Gains 0.3% Against Dollar at Parallel Market, Loses 0.3% at I&E Window

January 6, 2018
naira and dollar

By Cowry Asset

In the just concluded week, the Naira gained ground against the US Dollar at the parallel (black) market segment week-on-week (w-o-w) by 0.27 percent to N363/$.

However, the local currency depreciated at the Investors & Exporters Forex Window (I&E FXW) by 0.27 percent to N361.31/$, despite the increased foreign exchange reserve by $227miliion to $38.3 billion in the week.

However, the Naira closed steady against the US Dollar at both the Bureau De Change (BDC) and the interbank foreign exchange market segments at N360/$ and N330/$ respectively.

Meanwhile, most dated forward contracts at the interbank over-the-counter (OTC) segment depreciated despite sustained increase in the foreign exchange reserves 1 month, 2 months, 3 months and 6 months contracts depreciated w-o-w by 0.49 percent, 0.64 percent, 0.71 percent and 0.86 percent to close at N365.63/$, N370.23/$, N375.08/$, and 390.65/$ respectively; while the spot rate appreciated w-o-w by 0.02 percent, to close at N305.95/$.

Next week, we expect sustained stability in the Naira as global crude oil prices retains its upbeat which should result in further build-up in foreign reserve.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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