…Nigeria’s FX reserves expanded further this week, as the gross reserves grew by USD507.09 million w/w to USD35.28 billion (11 July)
SAT JULY 13 2024-theGBJournal| The naira depreciated by 3.5% w/w to NGN1,563.80/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM), as the Central Bank of Nigeria (CBN) sold c.USD94.00 million at an average of NGN1,504.00/USD to banks during the week.
At the NAFEM, total turnover (as of 11 July) increased by 14.3% WTD to USD943.29 million, with trades consummated within the NGN1,465.00/USD – NGN1,590.00/USD band.
In the forwards market, the naira rates decreased across the 1-month (-3.3% to NGN1,588.23/USD), 3-month (-2.8% to NGN1,640.70/USD), 6-month (-2.8% to NGN1,725.39/USD) and 1-year (-2.5% to NGN1,894.92/USD) contracts.
Although market liquidity improved on mild intervention from the CBN, it remained insufficient to drive a significant appreciation in the naira, as demand for FX continued to outweigh supply.
Looking ahead, we expect the naira to remain under pressure due to the muted FX supply from the CBN and weak inflows from FPIs.
Meanwhile, Nigeria’s FX reserves expanded further this week, as the gross reserves grew by USD507.09 million w/w to USD35.28 billion (11 July).
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
