Naira Loses 0.28% in One Week at I&E Amid 0.9% Rise in Foreign Reserves

The local currency last week closed steady week-on-week (w-o-w) against the Dollar in               most foreign exchange market segments amid weekly injections by the Central Bank of Nigeria (CBN) worth $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.

According to analysts at Cowry Asset, the Naira closed flat against the Dollar at the parallel (black) market and the interbank foreign exchange market at N363/$ and N330/$ respectively while it appreciated at the Bureau De Change segment by 0.02 percent to close at N360/$ amid increase in foreign exchange reserves by 0.9 percent to $41.5 billion.

However, at the Investors & Exporters Forex Window (I&E FXW) segment the Naira depreciated by 0.28 percent to close at N360.36/$.

Meanwhile, dated forward contracts at the interbank over-the-counter (OTC) segment mostly appreciated; 1-month, 2-month, 3-month and 6-month contracts appreciated by 0.01 percent, 0.08 percent, 0.18 percent and 0.06 percent to close at N364.36/$, N368.40/$, N372.46/$ and 387.73/$ respectively.

However, spot rate depreciated by 0.03 percent to close at to 305.95.

This week, we expect stability in the Naira as the successfully raised $2.5 billion Eurobond results in further build-up in foreign reserves.

Source: Business Post, February 19, 2018