Naira Depreciates against US Dollar at I&E FX, Interbank Windows


In the just concluded week, the local currency depreciated by 0.06% at the Investors & Exporters Forex Window (I&E FXW) to close N360.88.

Also, at the Interbank Foreign Exchange market, NGN/USD rose (i.e. Naira depreciated) by 0.04% to close at N356.60/USD despite the sustained weekly injections of USD210 million by CBN into the foreign exchange market via the Secondary Market Intervention Sales (SMIS), of which: USD100 million was allocated to Wholesale SMIS, USD55 million was allocated to Small and Medium Scale Enterprises and USD55 million was sold for invisible.

Naira Depreciates against US Dollar at I&E FX, Interbank Windows - Brand Spur

However, Naira remained unchanged against the US dollar at both the Bureau De Change (BDC) and the parallel (‘black’) market segments at N358/USD and N360/USD respectively.

Meanwhile, the Naira/USD exchange rate rose for all of the foreign exchange forward contracts – spot rate, 1 month, 2 months, 3 months, 6 months and 12 months rates rose (i.e. Naira depreciated) by 0.02%, 0.06%, 0.13%, 0.27%, 0.11% and 0.04% to close at N307.00/USD, N363.64/USD, N366.64/USD, N369.86/USD, N381.51/USD and N404.26/USD respectively.

In the new week, we expect appreciation of the Naira against the USD in most market segments, especially at the I&E FXWindow as CBN sustains its special interventions amid sustained accretion to external reserves.