SAT, JUNE 10 2023-theGBJournal |Nigeria’s FX reserves declined further this week, as the gross reserves level declined by N137.97 million w/w to N34.88 billion (07 June) following the country’s fragile liquidity position.
Besides, accretion to the reserves remains low impacted by low crude oil production and sudden drop in oil prices.
Likewise, the naira depreciated by 1.7% to N472.50/USD at the I&E window (IEW), with total turnover at the window (as of 08 June 2023) decreasing by 21.4% WTD to US$74.18 million, as trades were consummated within the N460.00 – N492.30/US$ band.
In the Forwards market, the naira appreciated across the 1-month (+0.5% to N480.18/US$), 3-month (+0.9% to N506.77/US$), 6-month (+0.8% to N532.01/US$) and 1-year (+0.8% to N561.12/US$) contracts.
Meanwhile, the overnight (OVN) rate inched higher by 23bps to 12.1% this week, with the level ticking up marginally at the tail end of the week, given a late CRR debit.
Note that system liquidity was buoyant during the week, with the level settling at a net long position of N543.14 billion (prior week: net long position of N184.17 billion).
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