SAT, APRIL. 15 2023-theGBJournal |After twelve consecutive weeks of decline, Nigeria’s FX reserve increased slightly this week, as the gross reserve position rose by $38.89 million w/w to close at $35.43 billion (12 April 2023).
However, analysts expect the FX liquidity issues to remain over the short-to-medium term as there are no positive signal that denotes an improvement in FX supply relative to the pre-pandemic levels.
Moreover, considering the tepid accretion to the reserves given low crude oil production and elevated PMS under-recovery costs, FPIs who have historically supported supply levels in the IEW will be needed to sustain FX liquidity levels in the medium to long-term.
Meanwhile, at the I&E window, the naira depreciated by 0.2% to N464.00/USD, with total turnover at the window (as of 13 April) decreasing by 27.4% WTD to USD297.42 million – trades were consummated within the N460.00 – N507.08/USD band.,
In the Forwards market, the rate across the 1-month (-0.5% to N469.20/USD), 3-month (-0.5% to N485.89/USD), and 6-month (-0.4% to N513.22/USD) contracts decreased but appreciated at the 1-year (+0.6% to N562.49/USD) contract.
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