Dipo Olowookere
By Cowry Asset
Last week, the local currency depreciated week-on-week (w-o-w) against the Dollar at the Investors & Exporters Forex Window (I&E FXW) by 0.08 percent to close N361.05 despite 60.12 percent w-o-w increased turnover to $1.04 billion and weekly injections by Central Bank of Nigeria (CBN) of $210 million into the foreign exchange market; of which $100 million was allocated to Wholesale (SMIS), $55 million was allocated to Small and Medium Scale Enterprises and $55 million was sold for invisibles.
Also, the local currency weakened against the Dollar at the parallel (black) market and the Bureau De Change segments by 0.28 percent each to close N363/$ and N361/$ respectively while the Naira/$ rate remained unchanged at the interbank foreign exchange market at N330/$.
Meanwhile, all dated forward contracts at the interbank over-the-counter (OTC) segment depreciated – spot rate, 2 months, 3 months, 6 months and 12 months contracts strengthened by 0.20 percent, 0.35 percent, 0.55 percent, 0.69 percent, 1.25 percent and 0.38 percent to close N305.80/$, N364.77/$, N368.66/$, N372.63/$ N385.87/$ and N403.39/$ respectively.
This week, we expect stability in exchange rate as CBN continues with the weekly intervention and turnover increases at the I&E FXW.
