The inter-bank foreign exchange market received another boost of $210 million from the Central Bank of Nigeria (CBN), following transactions concluded on Tuesday.
Figures obtained from the CBN on Tuesday indicated that the Bank offered $100 million to authorized dealers in the wholesale sector of the market, while the Small and Medium Enterprises (SMEs) and the invisibles segments were allocated the sum of $55 million each.
The Director, Corporate Communications at the Bank, Isaac Okorafor noted that the CBN Management remained particularly pleased with the prevailing stability in the Nigerian foreign exchange market.
He went further to reaffirm the Bank’s commitment to continue to boost interbank foreign exchange market to ensure stability and availability to meet customers’ demand.
At the last Bank intervention, the sum of $284.2 million and CNY36 million were injected into the Retail Secondary Market Intervention Sales (SMIS) and in the spot and short tenured forwards segments of the foreign exchange market.
Meanwhile, the Naira on Tuesday, exchange at an average of N358/$1 in the BDC segment of the market.
At the Investors & Exporters Foreign Exchange (I& EFX) window, the Naira lost 0.11per cent, 0.20per cent and 0.05per cent against the Pounds, Dollar and Euro to close at N440.41, N362.92 and N405.91 respectively.
According to the FMDQ OTC Securities, a total of $169.75 million was traded at the specialized window for Investors and Exporters.
At the parallel market, the Naira was traded flat against the Dollar and Euro to close at N360 and N397 respectively, while it depreciated by 0.70per cent against the Pounds to close at N448.
At fixed income, the money market rates declined on Tuesday as Open Buy Back rate and Overnight rates shed 79basis points each to close at 4.64per cent and 5.21per cent respectively.
The decline in rates may be due to the inflow from failed foreign exchange bids which could have improved system liquidity.
The bond market performance was negative today as yields increased across most maturities. While the yields on the 5yr and 10yr benchmark bonds closed flat at 13.61per cent and 13.69per cent, the yield on the 7yr benchmark increased by four basis points to close at 13.65per cent.
“In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation,” analysts at InvestmentOne Research said.