SAT, NOV 25 2023-theGBJournal|The naira depreciated by 0.4% to N794.89/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM), with the total turnover (23 November 2023) at the market decreasing by 27.4% WTD to USD610.99 million, as trades were consummated within the N600.00 – N1136.00/USD band.
In the Forwards market, the naira recorded depreciation across the 1-month (-5.1% to N911.07/USD), 3-month (-5.5% to N941.38/USD), 6-month (-6.9% to N984.57/USD) and 1-year (-5.0% to N1,028.36/USD) contracts.
Looking ahead, we expect FX liquidity conditions to remain tight, pending on the receipt of the expected FX inflows.
Thus, we expect the pressure on local currency to persist in the near term.
Nonetheless, we expect foreign investors to keenly watch the development in the FX space with regards to the expected FX inflows as guided by the authorities, CBN’s recent actions in clearing its FX backlogs, and firm direction of short-term interest rates.
Meanwhile, Nigeria’s FX reserve maintained its downward trend as the gross reserves declined by USD98.78 million w/w to close at USD33.20 billion (23 November).
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com| govandbusinessj@gmail.com
