Naira Appreciates Marginally at I&E Last Week

• Naira Appreciates Marginally at I&E Last Week

The Nigerian Naira gained slightly at the Investors and Exporters (I&E) Forex Window last week.

Naira appreciated by 0.07 percent at the I&E window to N360.51 per dollar but depreciated by 0.28 percent at the Bureau De Change (BDC) segment to N359 a U.S. dollar.

The local currency closed flat at the parallel market (black) and interbank foreign exchange market at N356.92 and N361 to a U.S dollar, respectively.

The Central Bank of Nigeria injected $210 million into the forex market through the Secondary Market Intervention Sales (SMIS) last week to support the Naira and aid dollar liquidity.

A break down of the number showed the apex bank allocated $100 million to the Wholesale SMIS segment, while $55 million was appropriated to Small and Medium Scale Enterprises sector.

The remaining $55 million was sold to the invisibles segment.

The uncertainty surrounding Nigerian economic policy continues to impact growth and drag on foreign direct investment as foreign investors withdrew more money in the first quarter than they invested, saying there is no clear economic direction.

With the crude oil trading at $62 a barrel, down from $73 it traded last month. Nigeria foreign reserves may start feeling the impact of capital flight if the situation is not addressed.

The Nigerian Stock Exchange has recorded losses in the last 8 trading sessions before slightly gaining 0.06 percent on Friday. Still, market sentiment remains week.