In the just concluded week, Naira depreciated against the USD at the Bureau De Change and parallel (‘black’) markets by 0.43% and 0.42% to close at N472.00/USD and N477.00/USD respectively despite efforts by CBN to reduce pressure on the exchange rate, especially at the parallel market.
However, the Naira closed flat at the Investors and Exporters Window at N394.00/USD Also, NGN/USD closed flat at N380.69/USD at the Interbank Foreign Exchange market amid weekly injections of USD210 million by CBN into the forex market: USD100 million was allocated to Wholesale Secondary Market Intervention Sales (SMIS), USD55 million was allocated to Small and Medium Scale Enterprises and USD55 million was sold for invisible.
Elsewhere, the Naira/USD exchange rate rose (Naira depreciated) for most of the foreign exchange forward contracts: 2 months, 3 months and 6 months rates climbed by 0.16%, 0.11% and 0.06% and 0.96% respectively to close at N401.72/USD, N404.94/USD and N415.16 respectively.
However, the spot rate was flattish at N379.00/USD, while 1 month and 12 month rates fell (Naira appreciated) by 0.05% and 0.25% to N397.81/USD and N434.22/USD.
In the new week, we expect Naira/USD to stabilize at most market segments, especially at the I&E FX Window and parallel (“black”) markets amid rising crude oil prices.