...FX reserves settles lower by USD44.39 million w/w
SAT, NOV 11 2023-theGBJournal|The local currency, the Naira, fell by 22.1% to N996.75/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM), with total turnover at the market (as of 09 November 2023) decreasing by 7.4% WTD to USD545.89 million, as trades were consummated within the N700.00 – N1,100.00/USD band.
Analysis shows that the gap between the official rate and parallel market rate after Friday’s trading, is now within N166, about 17.2% closer together and a decline from 63% in the gap back in June.
The dollar, in past few weeks, has been settling at the N1150 (+-50) range (parallel).
For the last few weeks, the daily volume of dollars traded on FMDQ was between USD88 million and USD100 million. On Thursday, US$228 million was traded.
In effect, more dollars are coming into the official market as the rate depreciates and gets closer to the parallel market.
In the Forwards market, the rate declined across the 1-month (-9.9% to N873.59/USD), 3-month (-10.0% to N890.19/USD), 6-month (-10.3% to N918.00/USD), and 1-year (-9.5% to N969.18/USD) contracts.
Meanwhile, Nigeria’s FX reserve settled lower for the first time in 4 weeks, as the gross reserves position fell by USD44.39 million w/w to close at USD33.42 billion (09 November).
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