The naira depreciated by 0.9% to NGN769.25/USD at the I&E window as against N763 on Tuesday (before the two-day public holiday to commemorate the Muslim festival of Eid-el-Kabir). Turnover rose 9% to close at $263.45 against $245.65 on Tuesday.
Nigeria’s FX reserve continued to decline, as the gross reserve position declined by USD86.76 million w/w to close at USD34.22 billion (26 June).
Analysts at Cordros Securities said, “In the weeks ahead, we expect the re-introduction of the ‘willing buyer, willing seller’ model at the IEW to influence the exchange rate direction. Nonetheless, while the CBN’s abolishment of its multiple FX windows is positive in boosting foreign investors’ confidence, we think they will adopt a wait-and-see approach, for now, looking for signals on the CBN’s plans to start clearing the FX backlogs and boosting FX supply to support the market in the near term.”
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