SAT, FEB 24 2024-theGBJournal| The naira depreciated by 7.7% to N1,665.50/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
Midweek, the CBN reinstated the two-way FX quote system with trading hours between 10am – 2am. In addition, the apex bank set a standard transaction size of USD100,000.00 and bid/offer spread of N50.00 (+/-5.0% of prior day’s NAFEX rate).
At the NAFEM, total turnover (as of 22 February 2024) decreased by 40.8% WTD to USD643.01 million, as trades were consummated within the N1,050.00 – N1,851.00/USD range.
In the Forwards market, the naira rates recorded for the 1-month (-4.9% to NGN1,582.69/USD), 3-month (-4.7% to N1,618.38/USD), 6-month (-4.7% to NGN1,673.52/USD), and 1-year (-5.1% to N1,793.78/USD) contracts decreased.
Notwithstanding the recent policy actions by the CBN, the currency has remained under pressure given that the market supply remains frail.
Nigeria’s FX reserves recorded further accretion this week, as gross reserves level increased by US$151.79 million w/w to close at USD33.45 billion (21 February).
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