SAT, SEPT 16 2023-theGBJournal |Nigeria’s FX reserve maintained its descent this week, as gross reserves dropped by USD32.87 million w/w to close at USD33.29 billion (13 September).
Meanwhile, the naira depreciated by 4.6% to N756.91/USD at the I&E window (IEW), with total turnover at the window (as of 14 September 2023) decreasing by 48.6% WTD to USD229.01 million, as trades were consummated within the N720.00 – N807.15/USD band.
In the Forwards market, the naira rates recorded for the 1-month (-2.1% to N797.78/USD), 3-month (-2.4% to N818.79/USD), 6-month (-2.7% to N850.66/USD), and 1-year (-3.3% to N918.18/USD) contracts decreased.
The narratives in the FX market have remained the same in recent weeks, as FX reform momentum has slowed down.
Hence, barring any significant positive developments, Cordros Research say they expect the lingering low crude oil production and a sustained dip in foreign investors’ net flows to weigh on FX supply in the short term.
Consequently, we expect FX liquidity constraints to linger in the near term, ensuring the local currency pressures remain intact.
Twitter-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com| govandbusinessj@gmail.com
