SAT SEPT 28 2024-theGBJournal|The CBN’s consistent effort to support the naira – intervening with USD89.00 million this week – caused the naira to trend slightly slower, settling at N1,540.78/USD (+5bps w/w) at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Total turnover at the NAFEM as of 26 September increased by 3.7% WTD to USD787.54 billion, with trades consummated within the N1,540.00/USD – N1,699.00/USD band. In the forwards market, the naira rates decreased across the 1-month (-2.7% to N1,684.53/USD), 3-month (-2.6% to N1,721.12/USD), 6-month (-2.0% to N1,849.07/USD) and 1-year (-1.5% to N2,051.10/USD) contracts.
Despite the CBN’s market interventions, we anticipate persistent FX demand pressure in the near term, partly due to seasonal factors. This is likely to underpin the volatility in the naira in the short term.
Meanwhile, Nigeria’s FX reserves rose for the fourth consecutive time this week, as the gross reserve level grew by USD310.75 million w/w to USD37.78 billion (24 September) after CBN intervention but fell by over $2 billion from $39.07 billion (19 September 2024-CBN figure).
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