SAT NOV 09 2024-theGBJournal| The naira fell this week by 0.7% w/w to N1,678.87/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM) despite the CBN’s intervention, selling c. USD51.00 million to authorized dealers.
Total turnover at the NAFEM also dropped by 12.8% wtd to USD814.11 million, with trades consummated within the N1,591.60/USD – NGN1,700.00/USD band.
In the forwards market, the naira rates decreased across the 1-month (-0.9% to N1,714.79/USD), 3-month (-0.6% to N1,775.34/USD) contracts, 6-month (-1.0% to N1,867.26/USD) and 1-year (-0.9% to N2,042.33/USD) contracts.
Meanwhile, Nigeria’s FX reserves crossed the USD40.00 billion mark for the first time in 35 months growing by USD270.10 million w/w to USD40.04 billion (as of 6 November).
Although we note the sustained accretion in the FX reserves, we highlight that the CBN’s conservative approach towards FX reserves depletion will continue to underpin moderate intervention in the FX market.
Thus, we expect the naira to remain volatile in the short term.
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