Naira Strenghtens Against the USD at Investors and Exporters Window

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Naira Gains against the USD at the Bureau De Change, Parallel (“black”) Markets Brandspurng
Afolabi Sotunde Illustration Naira

In the just concluded week, Naira appreciated against the USD at the Investors and Exporters window as the exchange rate moderated by 0.01% to settle at N394.13/USD amid CBN redemption of USD500 billion Eurobond which matured in the course of the week.

Nevertheless, Naira weakened against the USD at the Bureau De Change and parallel (‘black’) market by 0.21% and 1.05% to close at N473.00/USD and N480.00/USD. Notably, 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
Invisibles.

Naira Gains against the USD at the Bureau De Change, Parallel (“black”) Markets Brandspurng
Afolabi Sotunde Illustration Naira

Elsewhere, the Naira/USD exchange rate rose for all the foreign exchange forward contracts: 1 month, 2 months, 3 months, 6 months and 12 months rates rose by 0.40%, 0.53%, 0.44%, 0.60% and 0.31% respectively to close at N399.85/USD, N403.82/USD, N407.41/USD, N418.73/USD and N436.65/USD respectively.

Meanwhile, the spot rate remains flattish at N379.00/USD.

In the new week, we expect Naira/USD to further stabilize at the I&E FX Window as the price of Nigeria’s crude oil variant Bonny light stays above USD50 per barrel level.