…In the forwards market, the naira rate was flat at the 1-month (N1,500.00/USD) contract
…Total turnover (as of 13 June) at the market declined by 46.4% WTD to USD683.83 million
SAT JUNE 15 2024-theGBJournal| The naira appreciated by 0.1% w/w to N1,482.72/US$ at the Nigerian Autonomous Foreign Exchange Market (NAFEM), as the total turnover (as of 13 June) at the market declined by 46.4% WTD to USD683.83 million, with trades consummated within the N1,400.00/USD – N1,505.00/USD band.
In the forwards market, the naira rate was flat at the 1-month (N1,500.00/USD) contract, but declined across the 3-month (-0.2% to N1,548.66/US$), 6-month (-0.3% to N1,617.29/US$) and 1-year (-0.7% to N1,761.62/USD) contracts.
Whilst no inflows from the CBN were recorded in the week, we point out that the naira traded with less volatility primarily due to reduced demand pressure and moderate inflows from autonomous sources.
In the short term, we anticipate a strengthening of the naira, given the World Bank’s approval of a US$2.25 billion loan, of which a first tranche of the loan (US$750.00 million, subject to request) is expected to follow, potentially supporting the Central Bank of Nigeria’s (CBN) ability to boost FX liquidity.
Nigeria’s FX reserves recorded accretion this week, as the gross reserves level increased by US$273.77 million w/w to US$33.16 billion (11 June).
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