Naira Closes Flat at the Investors & Exporters Window, Parallel Market

Afolabi Sotunde Illustration Naira

In the just concluded week, Naira remained unchanged against the USD at the Investors & Exporters (I&E) and Bureau De Change market to close at N410.00/USD and N480.00/USD respectively. However, Naira weakened against the greenback at the parallel market (‘black’) by 0.21% to close at N486.00/USD.

Meanwhile, NGN/USD exchange rate 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.

Elsewhere, the Naira/USD exchange rate depreciated for all the foreign exchange forward contracts: 1 month, 2 months, 3 months, 6 months and 12 months exchange rates rose by 0.02%, 0.05%, 0.09%, 0.16% and 0.29% respectively to close at N412.17/USD, N415.24/USD, N418.24/USD, N426.88/USD and N443.72/USD However, the spot rate remained flat at N379.00/USD.

In the new week, we expect Naira/USD to stabilise at most FX Windows as crude oil prices remain relatively high in the international market.

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Cowry Research

Cowry Research is a subsidiary of Cowry Asset Management Limited — an investment banking firm incorporated on February 22, 2005. Cowry Asset Management is professionally managed and licensed under Securities & Exchange Commission as an issuing house, financial adviser, underwriter, and venture capital manager.