In line with our expectation, Naira closed flat against the USD at the Investors and Exporters FX Window (I&E FXW) to close at N386.00/USD.
Also, NGN/USD exchange rate remained
unchanged to close at N470.00/USD and
N475.00/USD, at the Bureau De Change and the parallel (“black”) market respectively.
NGN/USD closed flat at N381/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 invisibles.
Elsewhere, the Naira/USD exchange rate depreciated for most of the foreign exchange forward contracts: 1 month, 2 months and 12 months rates rose (i.e depreciated) by 0.03%, 0.02% and 0.30% respectively to close at N387.51/USD, N388.78/USD and N409.32/USD respectively.
However, spot rate closed flat at N381.00/USD while 3 months and 6 months rates fell (i.e appreciated) by 0.05% and 0.14% to close at N389.81/USD and N393.79/USD respectively.
In the new week, we expect the relatively sustained high crude oil prices, especially bonny light sweet crude, to have positive impact on the exchange rate particularly at the I&E FXW.
More so, we feel that the widened disparity between different exchange rates should shrink if CBN reintroduces the sale of foreign currency to Bureau De Change.