Modupe Gbadeyanka
By Cowry Asset
Last week, the Central Bank of Nigeria (CBN) intervened in various segments of the interbank foreign exchange market with the sale of $195 million.
The wholesale segment of the market received $100 million, the Small and Medium Enterprises (SMEs) segment was boosted with $50 million while the Invisibles segment received $45 million.
Furthermore, as at Thursday, October 12, 2017, Nigeria’s foreign reserve stood at $33.11 billion.
Consequently, the Interbank market (NIFEX) exchange rates remained unchanged at N330/$.
Similarly, the Naira remained unchanged week-on-week (w-o-w) at the Bureau De Change and Parallel market segments at N360/$ and N363/$ respectively.
However, at the I&E FX Windows, the Naira appreciated by 0.06% to N360.43/USD.
In the forwards market, the spot, 3months, 6 months and 12months forward contracts appreciated w-o-w by 0.05%, 0.03%, 0.02% and 1.97% to N305.50/$, N378.34/$, N398.29/$ and N423.43/$ respectively.
This week, amid relatively high global crude oil prices which should result in further build-up in foreign reserves as well as CBN’s continued intervention in the various segments of the interbank foreign exchange market, we expect further stability of the Naira/Dollar exchange rate.
