SAT 14 AUG, 2021-theGBJournal- Nigeria’s FX reserve sustained its accretion for the fifth consecutive week, as the gross reserves position edged higher by USD24.41 million w/w to USD33.59 billion (11th August 2021).
Meanwhile, the naira appreciated by 0.1% to NGN410.80/USD at the I&E window (IEW) but depreciated by 1.0% to NGN515.00/USD in the parallel market.
At the IEW, total turnover (as of 12th August 2021) decreased by 15.6% WTD to USD571.97 million, with trades consummated within the NGN400.00 – 421.96/USD band.
In the Forwards market, the rate was flat at the 1-month (NGN412.22/USD) and 1-year (NGN434.91/USD) contracts but appreciated across the 3-month (+0.1% to NGN415.27/USD) and 6-month (+0.1% to NGN421.65/USD) contracts.
We expect improved liquidity in the IEW over the medium term, given our expectation of increased inflows from crude oil receipts, and inflows from FCY borrowings (USD6.18 billion) and IMF SDR (USD3.40 billion).
Accordingly, we expect the naira to remain relatively range-bound (NGN410.00/USD – NGN415.00/USD) at the IEW.
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