SAT 31 JULY, 2021-theGBJournal- Nigeria’s FX reserves position sustained its accretion, as the gross reserves position increased by USD48.94 million w/w to USD33.38 billion (29th July 2021).
Meanwhile, the naira stayed flat at NGN411.44/USD at the I&E window (IEW) but depreciated by 2.5% to NGN517.00/USD at the parallel market.
At the IEW, total turnover (as of 29th July 2021) increased by 52.2% WTD to USD671.84 million, with trades consummated within the NGN387.67 – 420.90/USD band.
In the Forwards market, the rate depreciated across the 1-month (-0.2% to NGN413.70/USD), 3-month (-0.3% to NGN417.79/USD), 6-month (-0.2% to NGN424.01/USD) contracts but was flat on the 1-year (NGN436.43/USD) contract.
We expect improved liquidity in the IEW over the medium term, given our expectation of increased oil inflows in line with the rise in crude oil prices, and inflows from FCY borrowings. Accordingly, we expect the naira to remain relatively range-bound (NGN410.00/USD – NGN415.00/USD) at the IEW.
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