By Modupe Gbadeyanka
The recent decline in the external reserves of Nigeria continued last week, recording a further drop by 0.30 percent.
As at Friday, July 26, 2018, the foreign reserves of Africa’s largest market and economy was down to $47.25 billion.
A look at the foreign exchange market last week showed that the Nigerian Naira further depreciated week-on-week (w-o-w) against the US Dollar at the Investors & Exporters Forex Window (I&E FXW) by 0.19 percent to close at N362.28.
However, the local currency remained unchanged against the Dollar at the Bureau De Change segment and the parallel (black) market to close at N357/$ and N360/$ respectively as Central Bank of Nigeria (CBN) sustained its special intervention.
Also, Naira/Dollar rate also closed flat at the interbank foreign exchange market at N330/$ amid weekly injections by apex bank of $210 million into the foreign exchange market via the Secondary Market Intervention Sales (SMIS); of which $100 million was allocated to Wholesale (SMIS), $55 million was allocated to Small and Medium Scale Enterprises and $55 million was sold for invisibles.
Meanwhile, all dated forward contracts at the interbank over-the-counter (OTC) segment depreciated – spot rate,1 month, 2 months, 3 months and 6 months contracts lost 0.02 percent, 0.19 percent, 0.24 percent, 0.32 percent and 0.69 percent to close N305.90/$, N365.43/$, N368.81/$, N372.34/$ and N385.09/$ respectively.
“This week, we expect stability alternative forex market segments amid sustained CBN intervention therein,” analysts at Cowry Asset said.
