Naira begins the year with loss at investors window
The foreign exchange market resumed trading on Tuesday after Christmas-New Year holiday with the nation’s currency trading at a loss at the investors and exporters forex window.
After trading on Tuesday, naira depreciated by N0.67k to close at N361.00k per dollar as against N360.33k traded on Friday December 29, 2017 at the I&E window, data from FMDQ revealed.
The aira also weakened by N0.25k/$ at the Nigerian Foreign Exchange Fixing (NiFEX) window as it closed at N331.16k on Tuesday from N330.91k closed on Friday December 29, 2017.
However, at the inter-bank foreign exchange market, the local currency appreciated by N0.50k against the dollar, closing at the rate of N305.50k per dollar on Tuesday, compared to N306.00k traded on December 29, 2017.
Analysts at Cowry Asset Management limited retain their favourable outlook for the exchange rate, amidst sustained stability in global crude oil prices which should result in further build-up in foreign reserves as well, as the Central Bank of Nigeria (CBN) continued intervention to meet demand at the interbank foreign exchange market.
Last week, the local currency appreciated week-on-week in most foreign exchange market segments. The Naira/US dollar appreciated at the investors and exporters foreign exchange window (I&E FXW), Bureau De Change (BDC) and the black market by 0.14 percent, 0.28 percent and 0.27 percent to N360.33/USD, N360/USD and N364/USD, respectively, while it closed steady against the U.S. dollar at the interbank foreign exchange market segment at N330/USD.
Meanwhile, all dated forward contracts at the interbank OTC segment appreciated amid sustained increase in the foreign exchange reserves – the spot, 1 month, 2 months, 3 months and 6 months contracts appreciated w-o-w by 0.05 percent, 0.28 percent, 0.36 percent, 0.38 percent and 0.54 percent to close at N306.00/USD, N363.85/USD, N367.89/USD, N372.42/USD and 387.30/USD respectively.
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