SAT, 12 NOV, 2022-theGBJournal| Nigeria’s FX reserves sustained its decline for the tenth consecutive week, falling by US$141.14 million w/w to US$37.22 billion (10 November). As a result, the naira depreciated by 0.1% to N445.75/$ at the I&E window (IEW).
At the IEW, the total turnover (10 November) advanced by 9.7% WTD to US$461.91 million, with trades consummated within the N432.00 – N461.22/USD band.
In the Forwards market, the naira depreciated at the 1-month (-0.5% to NGN451.06/USD), 3-month (-0.5% to N460.71/USD), 6-month (-0.1% to N476.91/USD), and 1-year (-0.2% to N503.46/USD) contracts.
At the parallel market, the Naira sold for as low as N680/$ on Friday from a high of N880/$ at the beginning of the week on buying pressure.
‘’Nobody knows why the dollar is falling this fast this week, we are surprise,’’ one parallel market operator told theG&BJournal Friday, ‘’we know that nobody is buying and nobody wants to sell again,’’ he added. A prominent Bureau de Change Operator (BDC) said he thinks some big buyers are just waiting for signal from the market to resume buying and selling.
Meanwhile, the overnight (OVN) rate expanded by 400bps to 12.8% this week, as the net NTB issuances (N117.09 billion) and OMO auction (N20.00 billion) debits outweighed the sole inflow from OMO maturities (N15.00 billion). We highlight that the average liquidity level remained at a net long position of N378.28 billion (vs net long position of N407.81 billion in the previous week).
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