SAT 10 JULY, 2021-theGBJournal- Nigeria’s Foreign Exchange reserves sustained its decline, dipping USD113.15 million w/w to USD33.12 billion (6th July 2021).
Meanwhile, the naira depreciated by 0.1% to NGN411.75/USD and 0.4% to NGN505.00/USD at the I&E window (IEW) and parallel market, respectively.
At the IEW, total turnover (as of 8th July 2021) decreased by 24.5% WTD to USD526.79 million, with trades consummated within the NGN400.00 – 420.86/USD band. In the Forwards market, the rate was flat at the 1-month (NGN413.52/USD) contract but appreciated across the 3-month (+0.1% to NGN417.65/USD), 6-month (+0.1% to NGN423.69/USD) and 1-year (+0.1% to NGN435.54/USD) contracts.
We expect improved liquidity in the IEW over the medium term, given our expectation of (1) increased oil inflows in line with the rise in crude oil prices, and (2) 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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