Naira Losses Against The USD At Most Forex Market Segments…

In the just concluded week, Naira depreciated against the USD at the Bureau De Change (BDC) and parallel market (black market) by 1.09% and 1.08% to close at N465.00/USD and N470.00/USD respectively.

Brandnewsday understands that despite much efforts by CBN to reduce pressure on the exchange rate. Also, Naira lost against the USD at the Investors and Exporters window by 4.66% to close at N410.25/USD.

However, NGN/USD closed flat at N380.69/USD at the Interbank Foreign Exchange market amid weekly injections of USD210 million by CBN into the forex market: USD100 million was allocated to Wholesale Secondary Market Intervention Sales (SMIS), USD55 million was allocated to Small and Medium Scale Enterprises and USD55 million was sold for invisible.

Naira: Forex

Elsewhere, the Naira/USD exchange rate rose (Naira depreciated) for most of the foreign exchange forward contracts: 1 month, 2 months, 3 months, 6 months and 12 months rates rose by 5.21%, 5.08%, 6.04%, 7.76% and 10.64% respectively to close at N418.50/USD, N421.00/USD, N428.25/USD, N445.83/USD and N477.56/USD respectively. However, the spot rate was flattish at N379.00/USD.

In the new week, we expect Naira/USD to depreciate at most market segments, especially at the Bureau De Change and parallel (‘black’) markets given the sharp depreciation of the foreign exchange forward contracts.