This led to excess demand which spilt over to the Bureaux de change (BDC) and parallel market segment. As a result, the naira depreciated at the BDC and parallel market segments by 2.9 percent and 3.13 percent to N355 and N363 per dollar respectively. Analysts at Cowry Assets Management Company, a Lagos-based investment firm, were of the opinion that the naira depreciates further this week due to the impact of the settlement of the $697 million forwards which would mature this week. “This week we anticipate increased upward pressure on the foreign exchange rate as the apex bank prepares to settle its obligations on its 1-month (July 2016) tenor futures contract entered on Monday, 27 June 2016 at the rate of N279 per dollar. Analysts at Afrinvest, however, stated, “The fulfilment of this commitment is expected to stoke investors’ confidence in the operations of the interbank market going forward.”
Meanwhile, the new foreign exchange rate regime received a major boost last week, with the CBN and Stanbic IBTC sealed a $60 million Naira-Settled Futures at N210 per dollar with 10 months tenor ending on April 26th, 2016.
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