Naira/Dollar Rates Rise Across Most Market Segments
By Cowry Asset
In the just concluded week, the Central Bank of Nigeria (CBN) injected $250 million into the interbank foreign exchange market.
In the wholesale segment of the market, CBN auctioned $100 million while the Small and Medium Enterprises (SMEs) and the Invisibles segment received $85 million and $65 million respectively.
However, the interbank exchange rate (NIFEX) remained unchanged at N330/$.
In other segments, the Naira appreciated week-on-week (w-o-w) at the Bureau De Change and Parallel market segments by 1.36 percent and 1.35 percent to N362/$ and N365/$ respectively.
It however depreciated at the Investors & Exporters Forex and Window (I&E FXW) by 0.03 percent to N359.67/$.
In the forwards market, the spot contract depreciated w-o-w by 0.02 percent to N305.85/$.
However, the 3 months, 6 months and 12 months forward contracts appreciated w-o-w by 0.27 percent, 0.34 percent and 0.10 percent to N377.4/$, N397.17/$ and N435.18/$ respectively.
Next week, we expect that CBN’s continued intervention in the interbank segment and increasing investor confidence would lead to further stability of the Naira/$ exchange rate.