SAT. 01 APRIL 2023-theGBJournal | Nigeria’s FX reserves recorded another decline this week, as the gross reserves position fell by US$173.01 million w/w to close at USD35.57 billion (29 March) – the lowest level since September 2021.
Meanwhile, the naira was flat at N461.38/USD at the I&E window (IEW), with total turnover at the window (as of 30 March 2023) decreasing by 61.0% WTD to USD367.50 million, as trades were consummated within the N453.50 – N479.27/USD band.
In the Forwards market, the naira rates recorded for the 1-month (+0.1% to N467.25/USD) and 3-month (+0.3% to N483.08/USD contracts increased but decreased for the 6-month (-1.0% to N511.96/USD) and 1-year (-0.6% to N565.28/USD) contracts.
In the week, the overnight (OVN) rate remains elevated at 18.9%, amid the inflows from FAAC disbursement (N453.61 billion), FGN bond coupon payments (N131.20 billion), and OMO maturities (N40.00 billion).
Nonetheless, we highlight that the average system liquidity settled at a net short position of NGN380.85 billion (vs a net short position of NGN40.72 billion in the previous week).
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