In the just concluded week, Naira gained against the USD at the Bureau De Change (BDC) and parallel (“black”) markets by 4.12% and 4.04% respectively to close at N465/USD and N475/USD respectively amid CBN’s new policy on foreign remittances.
However, the Naira depreciated at the Investors and Exporters Window by 1.22% to close at N395.00/USD.
Also, NGN/USD depriated by 0.45% to close 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.
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Elsewhere, the Naira/USD exchange rate depreciated further for most of the foreign exchange forward contracts: 1 month, 2 months, 3 months and 6 months rates rose by 1.87%, 3.13%, 4.09%, 7.02% and 12.29% respectively to close at N397.56/USD, N402.54/USD, N406.35/USD, N417.98 and N439.56/USD respectively. However, the spot rate was flattish at N379.00/USD.
In the new week, we expect Naira/USD to further appreciate at most market segments, especially at the Bureau De Change and parallel (“black”) markets as the new policy from CBN on foreign remittances becomes effective.