SAT 07 AUG, 2021-theGBJournal- Nigeria’s FX reserves closed higher for the third consecutive week, as the gross reserves position increased by USD137.23 million w/w to USD33.54 billion (4th August 2021).
Meanwhile, the naira stayed flat at NGN411.50/USD at the I&E window (IEW) but appreciated by 1.4% to NGN510.00/USD in the parallel market. At the IEW, total turnover (as of 6th August 2021) decreased by 37.8% WTD to USD489.19 million, with trades consummated within the NGN400.00 – 427.95/USD band.
In the Forwards market, the rate appreciated across the 1-month (+0.3% to NGN413.70/USD) and 3-month (+0.5% to NGN417.79/USD), 6-month (+0.5% to NGN424.01/USD) and 1-year (0.3% to NGN436.43/USD) contracts.
Cordros Research analysts say they 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 (2) inflows from FCY borrowings (USD6.20 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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