Naira Depreciates against U.S Dollar in FX Market
In the foreign exchange (FX) market, the Nigerian local currency, Naira, depreciates against dollar at the Bureau De Change and parallel market in the just concluded week.
Naira depreciated against the United States dollar markets by 0.22% and 0.43% respectively to close at ₦458/USD and ₦464/USD respectively.
However, Naira remained unchanged at the Investors and Exporters Window at ₦386/USD as crude oil prices of most variants at the international market recovered from last week losses.
On the other hand, exchange rate closed flat at ₦381/USD at the Interbank Foreign Exchange market amid weekly injections.
Following its intervention policy, the Central Bank of Nigeria (CBN) injected USD210 million into the forex market.
So, a total sum of 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 exchange rate depreciated for most of the foreign exchange forward contracts: 1 month, 2 months, 3 months and 6 months rates rose by 0.03%, 0.08%, 0.18% and 0.02% respectively.
Meanwhile, the contract close at ₦386.35/USD, ₦386.80/USD, ₦387.37/USD and ₦388.41/USD respectively.
However, the 12 months rates declined by 0.75% to ₦389.81/USD while the spot rate closed flat at ₦381.00/USD. In the new week.
Analysts at Cowry Asset Management said, “We expect Naira/USD to remain stable at the Bureau De Change market amid sustained intervention by CBN.
“We also expect appreciation at the Investors and Exporters FX Window (I&EW) given the relative stability in crude oil prices at the international market”, Cowry Asset stated.
Read Also: Naira Depreciates Despite Foreign Exchange Sales Resumption
Naira Depreciates against U.S Dollar in FX Market.
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