SAT OCT 26 2024-theGBJournal| The naira rose by 5bps w/w to N1,600.00/US$1 by the close of trading on Friday at the Nigerian Autonomous Foreign Exchange Market (NAFEM) following the Central Bank Of Nigeria (CBN) intervention at the official window.
The CBN sold a total of US$95.00 million to the authorized dealers.
Notably, the country’s FX reserves recorded accretion this week, as the gross reserves level grew by US$302.83 million w/w to US$39.30 billion (23 October), marking the 8th consecutive week of growth.
Total turnover at the NAFEM as of 24 October decreased by 33.8% WTD to US$1.14 billion, with trades consummated within the NGN1,581.16/US$ – N1,696.00/US$ band.
In the forwards market, the naira rates increased across the 1-month (+1.2% to N1,679.55/USD) and the 3-month (+0.9% to N1,754.42/US$) contracts but decreased across the 6-month (-0.2% to N1,867.42/US$) and 1-year (-0.9% to N2,085.58/US$) contracts.
While the CBN has continued to intermittently support the market, continuous currency depreciation points to a demand and supply imbalance.
This is likely to remain the case over the short term until there are sufficient inflows in the market to support the CBN’s interventions.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
