FRI. 07 APRIL 2023-theGBJournal | Nigeria’s FX reserves decreased by US$111.10 million w/w to USD35.39 billion (05 April).
Likewise, the naira depreciated by 0.4% to N463.25/US$ at the I&E window (IEW), with total turnover at the window (as of 05 April) decreasing by 45.0% WTD to USD305.58 million – trades were consummated within the N460.00 – N479.98/US$ band.
In the Forwards market, the naira appreciated on the 1-month (+0.1% to N467.00/US$) and 6-month (+0.1% to N511.41/USD) contracts but decreased across the 3-month (-0.1% to N483.53/USD) and 1-year (-0.1% to N565.88/US$) contracts.
Meanwhile, with limited inflows, the average system liquidity settled at a net short position of N64.90 billion (vs a net short position of N463.91 billion in the previous week). Consequently, the overnight (OVN) rate remained elevated and settled at 18.9% by the end of the week.
Given the thin maturity profile over the coming weeks, the absence of any significant inflows into the system next week should keep money market rates elevated over the short term.
Nonetheless, we note a significant maturity at the tail-end of the month (N759.00 billion), which will be accompanied by coupon payments that may cause rates to descend.
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