Naira at the Investors & Exporters (I & E) Foreign Exchange market closed on Friday at N769.25 against the dollar from N763.00 it opened for trading.
On activity levels, the total turnover as of June 27 at the I&F FX fell by 30.6per cent per cent Week-till-Date (WTD) to $443.78 million, with trades consummated within the N465.00 – N841.00 against the dollar band.
In the Forwards market, the naira depreciated across the 1-month (-0.1per cent to N764.99 against the dollar) and 3-month (-0.1per cent to N785.13 against the dollar) contracts, while it appreciated at the 1-year (+0.1per cent to N878.26 against the dollar) contract.
Conversely, the naira closed flat at the 6-month (N815.39 against the dollar) contract.
Meanwhile, Nigeria’s foreign exchange reserve continued to decline, as the gross reserve position declined by $86.76 million week-on-week (w/w) to close at $34.22 billion as of June 26, 2023.
In the weeks ahead, analysts at Cordros Research said: “We expect the re-introduction of the ‘willing buyer, willing seller’ model at the IEW to influence the exchange rate direction.
“Nonetheless, while the CBN’s abolishment of its multiple FX windows is positive in boosting foreign investors’ confidence, we think they will adopt a wait-and-see approach, for now, looking for signals on the CBN’s plans to start clearing the FX backlogs and boosting FX supply to support the market in the near term.”
