…In the forwards market, the naira rate decreased across the 1-month (-0.5% to N1,668.65/USD) and 3-month (-0.2% to N1,738.23/USD) contracts
SAT SEPT 14 2024-theGBJournal| Following the CBN’s intervention of c.US$121.00 million during the week, the naira appreciated by 3.0% w/w to N1,546.41/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM), undermining the CBN’s intervention of c.USD 121.00 million during the week.
Total turnover at the NAFEM as of 12 September decreased by 15.7% WTD to USD980.92 million, with trades consummated within the N1,499.00/USD – N1,668.00/USD band.
In the forwards market, the naira rate decreased across the 1-month (-0.5% to N1,668.65/USD) and 3-month (-0.2% to N1,738.23/USD) contracts, but increased across the 6-month (+0.2% to N1,838.87/USD) and 1-year (+1.1% to N2,052.05/USD) contracts.
The naira is likely to remain under pressure despite recent efforts by the CBN to stabilize the currency. We expect market demand may continue to outweigh supply given the CBN’s mild intervention and weak FPI inflows
This week, Nigeria’s FX reserves recorded accretion, as the gross reserves level increased by USD337.89 million w/w to USD36.73 billion (10 September), possibly reflecting inflows from the proceeds (c. USD900.00 million) of the recently concluded domestic FGN US Dollar bond.
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