Foreign exchange transactions at the Investors’ and Exporterss (I&E) forex window increased month-on-month (m-o-m) by 9.78 percennt to USD4.49 billion in March 2018 from USD4.09 in February 2018.
This is coming as Nigeria’s external reserves have risen to $46.2 billion as at March 28, 2018, according to data from the website of the Central Bank of Nigeria (CBN).
A report by Cowry Asset Management limited revealed that the increased transaction value led to an appreciation in the monthly average value of the Naira against the U.S. dollars at all the market segments; Naira/USD appreciated at the parallel market, Bureau de change (BDC) and I&E forex window market segments by 0.18 percent, 0.08 percent and 0.03 percent to close at N362.20, N359.90 and N360.25 respectively.
Last week, the local currency depreciated week-on-week (w-o-w) against the U.S. dollar at the Investors & Exporters Forex Window by 0.06 percent to close at N360.20 amid 13.47 percent week on week decrease to USD0.95 billion in transactions at the I&E forex window.
remained unchanged at the interbank foreign exchange market, the parallel market and the BDC segments at N330.00/USD, N362.00/USD and N360/USD respectively as the CBN continued its weekly interventions of USD210 million into the foreign exchange market; of which USD100 million was allocated to Wholesale (SMIS), USD55 million was allocated to Small and Medium Scale Enterprises and USD55 million was sold for invisibles.
Meanwhile, most dated forward contracts at the interbank over-the-counter (OTC) segment depreciated – 1 month, 2 months, 3 months and 6 months contracts rose by 0.12 percent, 0.14 percent, 0.13 percent and 0.27 percent to close N364.02/USD, N368.10/USD, N372.27/USD and N387.08/USD respectively; however, spot rate fell by 0.02 percent to close at N305.65.
“We expect stability in exchange rate as businesses close for the Easter public holidays, thus reducing demand pressure in the market segment. Also, we anticipate diaspora remittances to help boost dollar availability”, analysts at Cowry Asset said.
The CBN on Friday, 23rd March, 2018 sustained its intervention in the Forex market by injecting the sum of $339.89 million in the Retail Secondary Market Intervention Sales (SMIS).
Isaac Okorafor, corporate communications department, CBN, noted that the continued interventions were in line with the pledge made by the Governor, Godwin Emefiele, to sustain market liquidity in order to boost production and trade.
According to Okorafor, the feedback from the wholesale and retail segments of the Nigerian Forex markets showed that customers were satisfied with their level of access to foreign exchange. He also assured Nigerians that the recent confirmation of Deputy Governors and Monetary Policy Committee (MPC) nominees by the Senate will further spur the Bank towards taking sound decisions needed for economic development.
Details obtained from the Bank indicate that the amount released was for requests in the agricultural, airlines, petroleum products and raw materials and machinery sectors.
HOPE MOSES-ASHIKE
