SAT, NOV 18 2023-theGBJournal|The naira depreciated by 1.5% to N791.75/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM), with total turnover at the market (as of 16 November 2023) decreasing by 8.6% WTD to USD635.21 million.
Trades were consummated within the N600.00 – N1,140.00/USD band. In the Forwards market, the naira rates across the 1-month (+1.0% to N864.79/USD), 3-month (+0.1% to N889.78/USD) and 6-month (+0.1% to N917.14/USD) contracts recorded appreciation, while the 1-year (-0.8% to N976.61/USD) contract depreciated.
The positive sentiment seen the FX market a few weeks ago appears to have been shortlived. But analysts expect the Central Banl of Nigeria (CBN) to continue to intervene in the market until some stabilisation is seen and, as we described recently, we expect the CBN to obtain significant firepower in terms of US dollars to address the FX market in due course.
Meanwhile, Nigeria’s FX reserve declined further this week, as the gross reserves level decreased by US$65.56 million w/w to close at US$33.31 billion (16 November).
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