SAT AUG 03 2024-theGBJournal| The naira fell by 0.5% w/w to N1,617.08/USD at the NAFEM, amid the CBN selling USD42.00 million to Authorized Dealers on Thursday.
Total turnover at the window (as of 01 August) decreased by 34.7% WTD to USD871.78 million, with trades consummated within the N1,500.00/USD – N1,645.00/USD band.
In the forwards market, the naira rates on the 1-month (N1,625.39/USD) and 1-year (N1,922.32/USD) contracts were unchanged, while it declined on the 3-month (-0.3% to N1,684.47/USD) contract. Elsewhere, the rate on the 6-month (+0.2% to N1,758.16/USD) contract increased.
FX liquidity remained tight this week following a muted intervention from the CBN, which underpinned the increased pressure on the naira.
Looking forward, given the CBN’s intention to resume a Retail Sale Dutch Auction on 7 August due to the increased FX demand pressure, we anticipate an improvement in FX liquidity, potentially reducing the volatility in the naira in the short term.
Meanwhile, Nigeria’s FX reserves reached its highest point since February 2023, as the gross reserve level increased by USD290.77 million w/w to USD36.80 billion (31 July).
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