Modupe Gbadeyanka
By Cowry Asset
This week, in line with our expectation, the Naira/Dollar exchange rate was relatively stable week-on-week at the interbank market (NIFEX), Bureau De Change and parallel market segments by at N329.75/$, N360/$ and N363/$ respectively.
This was amid injections by the CBN worth $195 million into the foreign exchange market of which
$100 million was allocated to Wholesale (SMIS), $50 million was allocated to Small and Medium Scale Enterprises and $45 million was sold for invisibles.
At the Investors & Exporters Forex Window (I&E FXW), the local currency appreciated further against the Dollar by 0.23 percent to N359.56/$ as at Thursday.
Meanwhile, dated forward contracts at the interbank OTC segment mostly appreciated amid increase in the foreign exchange reserves – external reserves increased week-on-week by 0.75 percent to $34.33 billion as at Wednesday, November 15, 2017.
The 1 month, 2 months, 3 months and 6 months contracts appreciated w-o-w by 0.41 percent, 0.48 percent, 0.47 percent and 0.49 percent to close at N364.34/$, N369.77/$, N375.88/$ and N395.91/$ respectively.
Next week, we retain our stable 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 in the various segments of the interbank foreign exchange market.
