In line with our expectation, the local currency lost against the USD at the Bureau De Change (BDC) by 1.11% to N365/USD despite the move by CBN to include Thursday as special intervention day to sell additional USD15,000 to
BDC operators in order to take care of customers’personal and business
allowances during the Christmas period.
Also, the Naira depreciated at
the parallel (‘black’) market segments by 1.65% to close N370/USD.
However, the Naira appreciated at Investors & Exporters Forex Window (I&E FXW) by 0.16% to close at N364.10 despite the declining crude oil prices.
The local currency remained flat to close at N359.81/USD at the Interbank Foreign Exchange market amid weekly injection of USD210 million by CBN into the foreign exchange.
Meanwhile, the Naira/USD moved in mixed directions across dated foreign exchange forward contracts at the interbank over-the-counter (OTC) segment – spot and 1 year FX rate rose (i.e. Naira depreciated) 0.02% and 0.36%, to close at N306.80/USD and N413.51/USD respectively.
However, 1 month and 3 months FX rate fell (Naira appreciated) by 0.02% and 0.10%, to close at N367.55/USD
and N374.29/USD respectively.
In the new week, we expect pressure on the Naira in most market segements, especially at the I&E FX Window,
as foreign portfolio investors continue to demand for the greenback.