Naira streghtens at I&E Forex window

The nation’s currency appreciated against the dollar week on week at the investors & exporters foreign exchange window (I&E FxW) and parrallel market segment. The naira strengthened at I&EFxW and black market by 0.16 per cent and 0.28 per cent to close at N360.00 and N362.00 to a dollar respectively amid $306 million accretion to the external reserve last week and the CBN weekly injection of $210 million into the forex marker total turnover in the I&E FX window dropped sharply by 27.5 per cent to $1.10 billion, with bulk of trades settled within the N360-N369 band.
However out of the amount the Central Bank of Nigeria injected into the forex market $100 million was allocated to wholesale (SMIS), $55 million went to small and medium scale Enterprises while the remaining $55 million was sold to invisibles. At the inter bank segment of forex market the naira sustained stabililty, standing at N330.00 per dollar and N360 per dollar respectively.
Meanwhile, all dated forward contracts at the inter bank over the counter segment appreciated during the week. The spot rate for one month, two months, three months and six months contracts rose by 0.02 per cent, 0.27 per cent, 0.33 per cent, 0.36 per cent and 0.59 per cent to close at N305.70 to a dollar, N363.60 to a dollar, N367.59 a dollar, N371.80 and N386.05 too dollar respectively. Financial analysts expect that there will be stability in the naira as global crude oil prices remain relatively high which should result in the further hold up of forex reserve.
The apex bank report for the week showed that treasury bills worth N53.96 billion auctioned through the primary market last week. The CBN sold bills totaling to N5.40 billion in 91 day TBs, N8.39 billion for 182 day tenor bills and N40.18 billion for 365 day bills. The bills were 1.48 per cent oversubscribed, with a higher stop rate on the 91- day standing at 11.95 per cent against 11.75 per cent recorded previously. The lower stop rate on the 364- day stood at 13. 15 per cent which traded previously at 13.19 per cent bills. The stop rate on the 182-day bill closed at 13.00 per cent, same as in the previous auction. Operators said that yields are expected to drop in the meantime, supported by expected buoyant system liquidity

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