SAT, JULY 22 2023-theGBJournal |Nigeria’s FX reserves sustained its downtrend this week, falling by USD58.63 million w/w to USD33.98 billion (19 July).
Through the week, the currency pressures remained intact, given seasonal-induced demand and still frail FX supply despite the CBN’s abolishment of its multiple FX windows.
On FX supply, foreign investors remained on the sidelines in the near term, looking for signals on market interest rates and CBN’s plans to start clearing the existing FX backlogs and boosting FX supply to support the market in the near term.
Meanwhile, the naira appreciated by 3.4% to N777.82/USD at the I&E window (IEW).
At the IEW, total turnover (as of 20 July 2023) declined by 13.2% WTD to USD340.87 million, with trades consummated within the N699.50 – N853.00/USD band.
In the Forwards market, the naira depreciated across the 1-month (-1.5% to N796.35/USD), 3-month (-0.1% to N807.45/USD), and 6-month (-0.6% to N825.67/USD) contracts, while it appreciated at the 1-year (+0.8% to N859.98/USD) contract.
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