December 4, 2020/Cowry Asset Report
We commend the CBN on this strategic move which we expect will further boost foreign currency supply in the country –especially at the parallel (“black”) market. CBN’s expected monthly inflow from diaspora remittances is USD2 billion. With the beneficiaries receiving their monies in foreign currency, they can now access the foreign exchange window which will offer them the best rate in exchange for their Naira.
FOREX MARKET: Naira Gains against the USD at BDC, Parallel (“black”) Markets amid New Forex Policy…
In the new week, we expect Naira/USD to further appreciate at most market segments, especially at the Bureau De Change and parallel (“black”) markets as the new policy from CBN on foreign remittances becomes effective…
MONEY MARKET: Net Inflow Worth N281.10 billion via OMO Create Liquidity Ease…In the new week, T-bills worth N445.04 billion will mature via the primary and secondary markets which will more than offset the T-bills worth N50.93 billion to be auctioned by CBN via the primary market; viz: 91-day bills worth N4.41 billion, 182-day bills worth N7.82 billion and 364-day bills worth N38.70 billion. We expect the stop rates of the issuances to be flattish as rates have dropped to a ridiculously low level.
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