Naira Sheds 0.16% at I&E, 0.28% at Black Market

By Cowry Asset

Last week, the local currency appreciated week-on-week (w-o-w) against the Dollar at the Investors & Exporters Forex Window (I&E FXW) and the parallel (black) market segments by 0.16 percent and 0.28 percent to close at N360 and N362 respectively.

This was amid $306 million accretion to the external reserves and weekly injections by the Central Bank of Nigeria (CBN).

A total of $210 million was injected into the foreign exchange market by the apex bank of which $100 million was allocated to Wholesale (SMIS), $55 million was allocated to Small and Medium Scale Enterprises and $55 million was sold for invisibles.

Elsewhere, the Naira/Dollar rate remained unchanged at the interbank foreign exchange market and the Bureau De Change segments at N330/$ and N360/$ respectively.

Meanwhile, all dated forward contracts at the interbank over-the-counter (OTC) segment appreciated — spot rate, 1 month, 2 months, 3 months and 6 months contracts rose by 0.02 percent, 0.27 percent, 0.33 percent, 0.36 percent and 0.59 percent to close at N305.70/$, N363.60/$, N367.59/$, N371.80/$ and N386.05/$ respectively.

This week, we expect stability in the Naira as global crude oil prices remain relatively high which should result in further build-up in foreign reserve.