In the just concluded week, Naira appreciated against the USD at the parallel (‘black’) market by 0.41% to close at N480.00/USD.
However, Naira weakened against the greenback at the Investors & Exporters window by 0.18% to close at N411.00/USD as the external reserves moderated by 0.63% w-o-w to settle at N34.87 billion as of March 4, 2021.
Meanwhile, NGN/USD exchange rate 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.
Meanwhile, Naira closed flat against the USD at the Bureau De Change at N475.00/USD.
Elsewhere, the Naira/USD exchange rate appreciated for all of the foreign exchange forward contracts: 1 month, 2 months, 3 months, 6 months and 12 months rates rose by 0.30%, 0.23%, 0.20%, 0.24% and 0.79% respectively to close at N413.76/USD, N417.33/USD, N420.33/USD, N428.77/USD and N440.01/USD.
However, the spot rate remained flattish at N379.00/USD.
In the new week, we expect Naira/USD to stabilise at the I&E FX Window as crude oil prices sustain the bullish momentum.