SAT. 04 MARCH 2023-theGBJournal | Nigeria’s FX reserve remained under pressure this week, as the gross reserve declined by USD41.96 million w/w to US$36.65 billion (02 March).
Meanwhile, the naira depreciated by 0.1% to N461.75/USD at the I&E window (IEW), with total turnover at the window (as of 02 March 2023) decreasing by 31.5% WTD to USD297.50 million, as trades were consummated within the N446.00 – N478.37/USD band.
In the Forwards market, the naira rate increased across the 1-month (+3.9% to N467.20/USD), 3-month (+1.2% to N486.10/USD), 6-Month (+2.7% to N512.13/USD), and 1-year (+5.3% to N543.35/USD) contracts.
Cordros Research analysts believe FX liquidity issues will remain over the short-to-medium term as they do not see any positive signal that denotes an improvement in FX supply relative to the pre-pandemic levels.
Meanwhile, just as envisaged, the overnight (OVN) rate expanded by 161bps, w/w to 12.4%.
The rate was flat for most of this week amid inflow from OMO maturities (N5.00 billion), before expanding at the week’s twilight following late debits for CRR and FX auctions.
Consequently, the average yield closed at a net long position of N908.57 billion (vs a net long position of N209.69 billion in the previous week).
Twitter-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.ng|govandbusinessj@gmail.com
