PRESSURES on the external sector seem persisting as outstanding foreign exchange demand on Forwards Contracts is now put at about USD4 billion despite several auctions by the Central Bank of Nigeria, CBN, to bring it down.
This was coming as the Naira depreciated significantly for the first time in recent months in the official interbank exchange rate closing at N315/ USD1, as against the stable N305/ USD1 in the past six months, while the parallel market rate still hovered between N498 and N500 to one USDollar.
Meanwhile foreign reserves remained in robust, rising by USD130 million on Friday to hit USD28.2 billion, a development which was expected to moderate exchange rates across all market segments. The apex bank had struggled to erase the backlog of foreign exchange demands since it began the new flexible foreign exchange regime mid last year, injecting over USD5 billion in batches with the latest batch injected last week amounting USD660 million for three-month and five-month currency forwards However, the weekly movements in most dated forward contracts at the interbank OTC (Over-The-Counter) segment suggests future stability of the Naira against the US Dollar. The spot rate for 1 month, 3 months, 6 months and 12 months forward contracts remained stable week-on-week at N305.25/USD, N315.34/USD, N323.27/USD, N331.53/USD and N349/USD respectively amid USD7.5 million in intervention sales by CBN to banks.
Read more at: http://www.vanguardngr.com/2017/02/excess-forex-demand-weighs-naira/
Read more at: http://www.vanguardngr.com/2017/02/excess-forex-demand-weighs-naira/
This was coming as the
Naira depreciated significantly for the first time in recent months in
the official interbank exchange rate closing at N315/ USD1, as against
the stable N305/ USD1 in the past six months, while the parallel market
rate still hovered between N498 and N500 to one USDollar.
Read more at: http://www.vanguardngr.com/2017/02/excess-forex-demand-weighs-naira/aThis was coming as the Naira depreciated significantly for the first time in recent months in the official interbank exchange rate closing at N315/ USD1, as against the stable N305/ USD1 in the past six months, while the parallel market rate still hovered between N498 and N500 to one USDollar.
Read more at: http://www.vanguardngr.com/2017/02/excess-forex-demand-weighs-naira/aThis was coming as the Naira depreciated significantly for the first time in recent months in the official interbank exchange rate closing at N315/ USD1, as against the stable N305/ USD1 in the past six months, while the parallel market rate still hovered between N498 and N500 to one USDollar.
Read more at: http://www.vanguardngr.com/2017/02/excess-forex-demand-weighs-naira/
Read more at: http://www.vanguardngr.com/2017/02/excess-forex-demand-weighs-naira
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