Th e nation’s currency regained strengths against the Dollar at the Bureaux De Change Segment of foreign exchange market, appreciating by 0.55 per cent to close at N363.00 to a dollar. But at the Interbank and Parallel market segment, the rate remained stable exchanging at N325 to a dollar and N368 to a dollar respectively.
Th e trading report showed that at the Investors & Exporters Forex Window (I&E FXW)exchange rate took diff erent dimension as the Naira lost ground against the U.S. dollar , week-on-week, depreciating by 1.38 per cent to N367.16 to a dollar. Th is was amid injections of $195 million into the foreign exchange market by Central Bank of Nigeria of which $100 million was allocated to Wholesale (SMIS), $50 million was allocated to Small and Medium Scale Enterprises and $45 million was sold for invisibles. Meanwhile, the weekly movements in most dated forward contracts at the interbank OTC segment suggested future depreciation of the Naira/ Dollar exchange rate despite a slight increase in the foreign exchange reserves – external reserves increased week-to-date by 0.16 per cent to $30.27 billion as at Th ursday last week.
Th e one month, three month, six months and 12 months contracts depreciated week on-week by 0.05 per cent, 0.07 per cent, 0.09 per cent and 20.85 per cent to close at N310.49 to a dollar , N321.16 per dollar, N339.39 per dollar and N373.18 kobo to a dollar respectively. Also, the spot rate depreciated by 0.02 per cent to N305.90 kobo to a dollar despite $7.5 million in intervention sales by CBN to banks. Forex dealers expected that in the current week, there would be stability at the alternative market segments, although subject to CBN’s level of Interventio ns. However, despite liquidity in the fi nancial system, money market tenor rates increases.
Th e Nigeria Inter bank off er Rate (NIBOR) increased for most of the tenor buckets as NIBOR for one month, three months and six months rose to 19.52 per cent (from 19.33 per cent , 21.61 per cent from 21.37 per cent and 23.83 per cent from 23.67 per cent respectively. Meanwhile, NIBOR for overnight funds fell to 6.21 per cent from 9.29 per cent recorded previously. Operators said that this week, there would be maturing treasury bills worth N208.283 billion which will more than off set treasury bill auctions worth N177 billion billion, through 91-day bills worth N35 billion, 182-day bills worth N22 billion and 364- day bills worth N120 billion. Hence, we expect fi nancial system liquidity ease and resultant stability in interbank .
