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Naira Loses 0.06% at I&E on 13.47% Drop in Transactions

By Cowry Asset

Last week, the local currency depreciated week-on-week (w-o-w) against the US Dollar at the Investors & Exporters Forex Window (I&E FX) by 0.06 percent to close at N360.20k amid 13.47 percent week-on-week decrease to $0.95 billion in transactions at the I&E FXW.

Elsewhere, the Naira/Dollar rate remained unchanged at the interbank foreign exchange market, the parallel (black) market and the Bureau De Change (BDC) segments at N330/$, N362/$ and N360/$ respectively as Central Bank of Nigeria (CBN) continued its weekly interventions of $210 million into the foreign exchange market; 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.

Meanwhile, most dated forward contracts at the interbank over-the-counter (OTC) segment depreciated — 1 month, 2 months, 3 months and 6 months contracts rose by 0.12 percent, 0.14 percent, 0.13 percent and 0.27 percent to close N364.02/$, N368.10/$, N372.27/$ and N387.08/$ respectively; however, spot rate fell by 0.02 percent to close at N305.65.

This week, we expect stability in exchange rate as businesses close for the Easter public holidays, thus reducing demand pressure in the market segment.

Also, we anticipate diaspora remittances to help boost Dollar availability.

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