By Amaka Ifeakandu Lagos
Th e nation’s currency appreciated week-on-week in most foreign exchange market segments amid injections by the Central Bank of Nigeria (CBN) worth $195 million into the forex market. Th e apex bank allocated $100 million to Wholesale (SMIS), $50 million was allocated to Small and Medium Scale Enterprises and $45 million was sold for invisibles. Th e Naira appreciated against the dollar at the Bureau De Change and Parallel market segments by 0.27 per cent each to N363 to a dollar and N366 per dollar respectively while the interbank market rate was fl at at N325 to Dollar. However, the Naira depreciated against the dollar at the Investors & Exporters Forex Window (I&E FXW) by 0.98 per cent, trading at to N366.37 to a dollar. Meanwhile, dated forward contracts at the interbank OTC segment suggested future appreciation of the Naira amid a slight increase in the foreign exchange reserves – external reserves increased week-to-date by 0.07 per cent to $30.36 billion as at Th ursday last week. Th e one month, three months, six months and 12 months forward contracts appreciated w-o-w by 0.12 per cent , 0.44 per cent and 0.22 per cent to N310.06, N319.72 and N338.11 respectively. Howevr, the spot rate depreciated w-o-w by 0.85 per cent to N308.5 against dollar amid $7.5 million in intervention sales by CBN to banks while 12 month contract depreciated by 1.04 per cent to N374.87against dollar In the current week, we expect further stability of the Naira against dollar exchange rate amid build up in external reserves.
