Naira Soars Across Market Segments on $195m CBN Intervention

By Cowry Asset

In the just concluded week, though the interbank market (NIFEX) and I&E FX Windows exchange rates remained unchanged at N330/$ and N360.4/$ respectively, the Naira appreciated week-on-week (w-o-w) at the Bureau De Change and parallel market segments by 0.28 percent and 0.54 percent to N362 and N365 respectively.

During the week, the Central Bank of Nigeria (CBN) injected $195 million into various segments of the interbank foreign exchange market.

In the Wholesale Secondary Market Intervention Sales (SMIS), CBN auctioned $100 million, the Small and Medium Enterprises (SMEs) window was boosted with $50 million while the Invisibles segment received $45 million.

In the forwards market, the spot contract appreciated w-o-w by 0.03 percent to N305.75/$ from N305.85/$.

Similarly, the 3-month, 6-month and 12-month forwards contracts appreciated by 0.05 percent, 0.02 percent and 2.70 percent to N377.99/$, N397.53/$ and N427.80/$ respectively.

This week, amid continued build-up in foreign reserves, rising global crude oil prices and CBN’s continued intervention in the various segments of the interbank foreign exchange market, we expect further stability of the Naira/Dollar exchange rate.