Naira Moderates Across Forex Market Segments

By Cowry Asset

Last week, the Central Bank of Nigeria (CBN) intervened in various segments of the interbank foreign exchange market with the sale of $195 million.

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.

Furthermore, as at Thursday, October 12, 2017, Nigeria’s foreign reserve stood at $33.11 billion.

Consequently, the Interbank market (NIFEX) exchange rates remained unchanged at N330/$.

Similarly, the Naira remained unchanged week-on-week (w-o-w) at the Bureau De Change and Parallel market segments at N360/$ and N363/$ respectively.

However, at the I&E FX Windows, the Naira appreciated by 0.06% to N360.43/USD.

In the forwards market, the spot, 3months, 6 months and 12months forward contracts appreciated w-o-w by 0.05%, 0.03%, 0.02% and 1.97% to N305.50/$, N378.34/$, N398.29/$ and N423.43/$ respectively.

This week, amid relatively high 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, we expect further stability of the Naira/Dollar exchange rate.