SAT, 23 JULY, 2022-theGBJournal| Nigeria’s FX reserve recorded another accretion this week, rising by USD10.91 million w/w to USD39.44 billion (18 Jul 2022).
Across the FX windows, the naira appreciated by 0.1% to NGN430.00/USD at the I&E window (IEW) but depreciated by 0.3% to N622.00/USD at the parallel market.
At the I&E window, total turnover (as of 21 Jul 2022) increased by 278.7% WTD to USD803.75 million, with trades consummated within the N410.00 – 444.00/USD band.
In the Forwards market, the rate was flat at the 1-month (N427.40/USD) contract, but depreciated at the 3-month (-0.1% to N435.50/USD) contract. The rate appreciated at the 6-Month (+0.3% to NGN448.09/USD) and 1-year (+0.2% to N471.71/USD) contracts.
Meanwhile, the overnight (OVN) rate expanded by 100bps w/w to 15.0%, as the already strained system liquidity was further pressured by debits for FGN bond (NGN123.85 billion) and FX auctions amid inflows from FGN bond coupon payments (NGN181.96 billion) and OMO maturities (NGN10.00 billion).
In the coming week, we expect system liquidity to remain tight as the expected inflows worth a combined NGN81.01 billion from FGN bond coupon payment (NGN51.01 billion) and OMO maturities (NGN30.00 billion) may not be sufficient to saturate the system and outweigh next week’s outflows.
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