Home Money FX Watch: Reserves depleted by US$62.97 million w/w to US$34.27 billion, Naira...

FX Watch: Reserves depleted by US$62.97 million w/w to US$34.27 billion, Naira depreciates by 2.0%

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SAT 29 MAY, 2021-theGBJournal- Nigeria’s FX reserves position sustained its decline, as it dipped by USD62.97 million w/w to USD34.27 billion (26th May 2021).

The naira was flat at NGN412.00/USD at the Investors & Exporters FX window (IEW) but depreciated by 2.0% to NGN495.00/USD at the parallel market. At the IEW, total turnover (as of 27th May 2021) increased by 126.7% WTD to USD1.16 billion, with trades consummated within the NGN400.00 – 420.25/USD band.

In the Forwards market, the rate weakened across the 1-month (-0.1% to NGN413.71/USD), 3-month (-0.3% to NGN420.39/USD), 6-month (-0.3% to NGN429.40/USD) and 1-year (-0.5% NGN447.56/USD) contracts.

Improved liquidity is anticipated by market watchers in the IEW over the medium term, given the higher oil prices and an expected increase in crude oil production volume. Accordingly,

Analysts at Cordros Research say they expect the naira to remain relatively range-bound (NGN410.00/USD – NGN415.00/USD) at the IEW.

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