SAT, JULY 01 2023-theGBJournal |Nigeria’s FX reserve continued to decline, as the gross reserve position declined by USD86.76 million w/w to close at USD34.22 billion (26 June).
Meanwhile, the naira continues to trade within familiar range. The currency appreciated by 0.1% to N769.25/USD at the I&E window (IEW).
On activity levels, the total turnover (27 June) at the IEW fell by 30.6% WTD to USD443.78 million, with trades consummated within the N465.00 – N841.00/USD band.
In the Forwards market, the naira depreciated across the 1-month (-0.1% to NGN764.99/USD) and 3-month (-0.1% to NGN785.13/USD) contracts, while it appreciated at the 1-year (+0.1% to NGN878.26/USD) contract. Conversely, the naira closed flat at the 6-month (NGN815.39/USD) contract.
Meanwhile, at the money market, the overnight (OVN) rate continued its downward trend this week, declining by 140bps to 2.0% as inflow from the May FAAC allocation (N484.27 billion) supported the already buoyant system liquidity.
We highlight that this week’s average system liquidity settled at a net long position of N874.39 billion (vs N755.96 billion in the prior week).
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