Forex Market Stable Amid Absence of CBN Injections

By Cowry Asset

In the just concluded week, the local currency appreciated week-on-week at the I&E FX window by 0.04 percent to N360.82/$ while it closed steady against the US Dollar at other market segments.

Specifically, the Naira/Dollar exchange rate closed steady at the interbank foreign exchange market segment, the Bureau De Change (BDC) and the parallel (black) market at N330/$, N361/$ and N365/$ respectively even in the absence of the weekly intervention by the Central Bank of Nigeria (CBN).

Meanwhile, dated forward contracts at the interbank OTC segment mostly appreciated amid sustained increase in the foreign exchange reserves-the spot, 1 month, 2 months and 3 months contracts appreciated w-o-w by 0.03 percent, 0.03 percent, 0.04 percent and 0.04 percent to close at N306.15/$, N364.87/$, N369.22/$ and N373.85/$ respectively.

This week, we retain our favourable outlook for the exchange rate amid sustained stability in global crude oil prices which should result in further build-up in foreign reserves as well as CBN’s continued intervention to meet demand at the interbank foreign exchange market.