…Nigeria’s FX reserves recorded gains this week, as the gross reserves level increased by US$96.05 million w/w to US$33.21 billion
SAT, FEB 17 2024-theGBJournal| Despite recent policy actions by the Central Bank of Nigeria (CBN), the Naira remains under intense pressure given that the market supply remains frail.
The currency plunged by 4.4% to N1,537.96/USD at the Nigerian Autonomous Foreign Exchange Market (NAFEM) at the close of trade on Friday, as the CBN sold c.US$170.00 million to banks during the week.
At the NAFEM, total turnover (as of 15 February 2024) declined by 60.2% wtd to US$968.86 million, with trades consummated within the N922.38 – N1,607.00/USD limit.
In the Forwards market, the naira depreciated across the 1-month (-2.5% to N1,505.23/USD), 3-month (-2.7% to N1,542.87/USD), 6-month (-3.2% to N1,595.69/USD), and 1-year (-3.4% to N1,702.07/USD) contracts.
At the parallel market, the Naira also depeciated, down 1.57% to close at N1,590/US$ in Friday as against N1,565 it traded the previous day.
Amidst the Naira’s woes, Nigeria’s FX reserves recorded gains this week, as the gross reserves level increased by US$96.05 million w/w to US$33.21 billion (14 February).
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