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) by 0.06 percent to close N360.85 amid weekly injections by Central Bank of Nigeria (CBN) 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 $55 million was sold for invisibles.
However, the local currency weakened against the Dollar at the parallel (black) market and the Bureau De Change segments by 0.28 percent each to close N364/$ and N362/$ respectively while the Naira/Dollar rate remained unchanged at the interbank foreign exchange market at N330/$.
Meanwhile, most dated forward contracts at the interbank over-the-counter (OTC) segment appreciated – 1 month, 2 months, 3 months contracts strengthened by 0.13 percent, 0.14 percent and 0.09 percent to close N364.29/$, N368.13/$ and N372.30/$ respectively; however, spot rate and 6 months contracts weakened by 0.02 percent and 0.10 percent to close N305.85/$ and N386.25/$ respectively.
This week, we expect depreciation in the exchange rate at the I&E FXW as 0.17 percent w-o-w decrease in the external reserves to $47.79 in the concluded week showed pressure on the green back.
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