…Total turnover at the NAFEM as of 26 July increased by 11.5% WTD to USD1.30 billion, with trades consummated within the NGN1,470.00/USD – NGN1,620.00/USD band
SAT JULY 27 2024-theGBJournal| The naira fell slightly to NGN1609.29/USD (-0.8% w/w) at the Nigerian Autonomous Foreign Exchange Market (NAFEM), even as the apex bank sold a total of USD120.00 million to banks twice within the week.
Total turnover at the NAFEM as of 26 July increased by 11.5% WTD to USD1.30 billion, with trades consummated within the N1,470.00/USD – N1,620.00/USD band.
In the forwards market, the naira rates decreased across the 1-month (-1.4% to NGN1,625.74/USD), 3-month (-1.6% to NGN1,679.12/USD), 6-month (-1.5% to N1,761.53/USD) and 1-year (-1.0% to N1,921.87/USD) contracts.
Although the CBN maintained its intervention in the FX market, it remained insufficient to support the naira, as FX demand continued to outweigh overall supply.
In the interim, we expect the naira to remain weak, driven by tight market liquidity due to the CBN’s limited capacity to significantly intervene in the FX market.
Meanwhile, further accretion was recorded to the country’s FX reserves this week, as the gross reserve level grew by USD424.91 million w/w to USD36.44 billion (25 July).
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