FRI 01 OCT, 2021-theGBJournal- The accretion to Nigeria’s FX reserves was sustained for the sixth consecutive week, as the gross reserve position closed higher by USD304.67 million w/w to USD36.41 billion (28th September 2021).
Meanwhile, the naira appreciated by 0.4% w/w to NGN413.38/USD at the I&E window (IEW) but depreciated by 0.4% w/w to NGN574.00/USD at the parallel market.
At the IEW, total turnover (as of 29th September 2021) decreased by 19.9% WTD to USD711.30 million, with trades consummated within the NGN404.00 – 448.53/USD band.
In the Forwards market, the rates on the 1-month (+0.1% to NGN415.06/USD), 3-month (+0.5% to NGN420.22/USD), 6-month (+0.8% to NGN428.06/USD), and 1-year (+1.5% to NGN443.78/USD) contracts reflected the appreciations of the naira to the greenback.
Analysts at Cordros Research said they expect improved liquidity in the IEW over the medium term, given our expectation of increased oil receipts in line with the rise in crude oil prices and inflows from FCY borrowings (USD6.18 billion) and IMF SDR (USD3.50 billion).
‘’Accordingly, we expect the naira to remain relatively range-bound (NGN410.00/USD – NGN415.00/USD) at the IEW.’’
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