Forex Market Segments Stable Amid CBN $210m Support

By Modupe Gbadeyanka

Last week, there was stability at the various segments of the currency market in the country as the Central Bank of Nigeria (CBN) put another $210 million into the market to sustain flow of forex to meet demands of customers.

According to a weekly report released by Cowry Asset, the Naira strengthened against the US Dollar at the Investors & Exporters Forex Window (I&E FXW) by 0.09 percent to N360.10/$ week-on-week (w-o-w).

However, at the Bureau De Change (BDC) and the interbank foreign exchange market segments, the local currency closed flat at N361/$ and N330/$ respectively.

But at the parallel (black) market segment, the Nigerian legal tender depreciated by 0.28 percent to N364/$.

During the week, the apex bank released $100 million to the Wholesale (SMIS) segment, $55 million to Small and Medium Scale Enterprises sector, and $55 million for invisibles.

Meanwhile, all dated forward contracts at the interbank over-the-counter (OTC) segment appreciated on sustained increase in the foreign exchange reserves – spot rate, 1 month, 2 months, 3 months and 6 months contracts appreciated w-o-w by 0.03 percent, 0.08 percent, 0.16 percent, 0.31 percent and 0.30 percent to close at N305.70/$, N363.93/$, N367.82/$, N371.75/$, and 386.50/$ respectively.

As the global crude oil prices retains upbeat, which should result in further build-up in foreign reserve, the Naira is expected to sustain stability this week.