…Total turnover at the NAFEM as of 10 October decreased by 31.9% WTD to USD880.34 million, with trades consummated within the N1,540.00/USD – N1,650.00/USD band
SAT OCT 12 2024-theGBJournal| The naira depreciated this week by 0.6% w/w to N1,641.27/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM) despite the Central Bank of Nigeria (CBN) intervening at the official window, selling c. USD50.00 million to authorized dealers.
Notably, we saw continued growth in the country’s FX reserves for the 6th consecutive week, as the gross reserves level grew by USD63.06 million w/w to USD38.67 billion (10 October).
Total turnover at the NAFEM as of 10 October decreased by 31.9% WTD to USD880.34 million, with trades consummated within the N1,540.00/USD – N1,650.00/USD band.
In the forwards market, the naira rates increased across the 1-month (+0.6% to N1,673.94/USD) and 3-month (+0.8% to N1,745.22/USD) contracts, while it decreased across the 6-month (-0.3% to N1,855.46/USD) and 1-year (-1.7% to N2,086.30/USD) contracts.
The naira is expected to trade with less volatility in the short term, given that the Central Bank of Nigeria (CBN) sustains efforts to keep the naira stable through intervention in the FX market and improving Nigeria’s carry trade by keeping naira yields elevated.
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