SAT 03 JULY, 2021-theGBJournal- Nigeria’s FX reserves sustained its decline, dipping USD196.31 million w/w to USD33.32 billion as at 30th June 2021.
Meanwhile, the naira appreciated by 0.1% to NGN411.25/USD at the I&E window (IEW) but depreciated by 0.6% to NGN503.00/USD at the parallel market.
At the IEW, total turnover (as of 1st July 2021) decreased by 22.7% WTD to USD537.85 million, with trades consummated within the NGN400.00 – 420.95/USD band. In the Forwards market, the rate depreciated across the 1-month (-0.1% to NGN413.43/USD), 3-month (-0.2% to NGN418.11/USD), 6-month (-0.5% to NGN424.09/USD) and 1-year (-0.5% to NGN435.74/USD) contracts.
We expect improved liquidity in the IEW over the medium term, given our expectation of increased oil inflows in line with the rise in crude oil prices, and inflows from FCY borrowings.
Accordingly, we expect the naira to remain relatively range-bound (NGN410.00/USD – NGN415.00/USD) at the IEW.
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