SAT. 10 DEC, 2022-theGBJournal| This week, Nigeria’s FX reserves remained pressured, declining by USD112.75 million w/w to USD36.96 billion (December 08).
As a result, the naira depreciated by 0.3% to NGN446.50/USD, at the I&E window (IEW).
At the IEW, total turnover (as of 08 December 2022) declined by 80.2% WTD to USD15.67 million, with trades consummated within the NGN455.06 – NGN460.60/USD band.
At the parallel market, the local currency Friday traded at N740/US$ as against N750/$, a net gain of about 0.6%.
In the Forwards market, the naira was flat at the 1-month (NGN460.02/USD) contract but appreciated at the 3-months (+0.4% to NGN469.86/USD), 6-months (+0.4% to NGN489.33/USD), and 1-year (+0.8% to NGN521.44/USD) contracts.
Meanwhile, the overnight (OVN) rate this week increased by 113bps w/w to 14.1%, as the debit for net NTB issuance (NGN50.00 billion) pressured the financial system.
Notwithstanding, we note that the average liquidity level closed higher at a net long position of N217.51 billion (vs net long position of NGN146.41 billion in the previous week).
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