…The naira wobbled further by 2.1% w/w to NGN1,596.92/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM )
…Total turnover at the NAFEM as of 19 July decreased by 2.7% WTD to USD1.09 billion, with trades consummated within the NGN1,470.00/USD – NGN1,650.00/USD band
SAT JULY 20 2024-theGBJournal|This week, Nigeria’s FX reserves hit its highest level in 16 months, as the gross reserve level increased by USD557.70 million w/w to USD35.93 billion (18 July), attributable to the disbursement of first tranche (USD750.00 million) of the Development Policy Financing from the World bank.
The loan was disbursed on under the Nigeria Reforms for Economic Stabilazation programme, and part of the broader $2,25 billion approved in June to bolster Nigeria’s economic stability and support the vulnerable population.
Meanwhile, the naira wobbled further by 2.1% w/w to NGN1,596.92/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM ) amid the CBN’s insufficient supply to the official (USD63.00 million) and parallel (USD20,000 for each eligible BDC) markets on Thursday.
Total turnover at the NAFEM as of 19 July decreased by 2.7% WTD to USD1.09 billion, with trades consummated within the N1,470.00/USD – N1,650.00/USD band.
In the forwards market, the naira rates on the 1-month (-0.9% to N1,603.29/USD), 3-month (-0.7% to N1,652.24/USD), 6-month (-0.5% to N1,734.73/USD) and 1-year (-0.3% to N1,901.25/USD) contracts declined.
The naira remained under pressure as FX demand continued to exceed overall supply. FX Inflows from FPIs remain muted amid sparse supply from the CBN.
In the short term, we expect the naira to remain volatile, barring any significant FX supply from the CBN.
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