The Central Bank of Nigeria (CBN) Investors & Exporters Foreign Exchange Window (I&EFX) total turnover rose to $1.9 billion last week as against $921.04 million in prior week, data from FMDQ OTC securities revealed.
The FMDQ’s referenced Dollar/Naira rate appreciated by 0.03 per cent to N360.32 while the Naira remained flat against the Dollar at N363 and N305.65 at the parallel market and interbank market respectively.
Consequently, the Interbank market (NIFEX) exchange rates remained unchanged at N330/Dollar. However, the Naira lost by 0.83per cent at the Bureau De Exchange (BDC) market to close at N363 against the Dollar. Despite the apex bank’s intervention in the foreign exchange market, the nation’s foreign reserves hit N33.36 billion last week Thursday, highest since February 2015, as global oil prices continued to increase steady.The price of Organization of Petroleum Exporting Countries (OPEC) basket of fourteen crudes stood at $55.52 a barrel last week Thursday, compared to $56.12 a barrel prior.
CBN spokesman, Isaac Okorafor, had noted that the increase in external reserves can be attributable to prevailing peace in the oil-rich Niger-Delta region of the country, which resulted into increased oil output and earnings.
He said with the sustained interventions, the apex bank had been able to push foreign exchange demand away from the parallel market into the formal, regulated market.
Analysts at Cowry Assets Limited, a Lagos-based securities company said the development confirmed their prediction of possible stable outlook for the exchange rate amid sustained stability in global crude oil prices. They expect this to result in further build-up in foreign reserves as well as CBN’s continued intervention in the various segments of the interbank foreign exchange market.
In the forwards market, the spot remained unchanged at N305.50/Dollar while the 3months, 6 months and 12months forward contracts appreciated w-o-w by 0.09per cent, 0.08per cent and 0.84per cent to N378.69/Dollar, N398.62/Dollar and N427.97/Dollar respectively.