CBN sells Naira at N306.95/Dollar

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The Central Bank of Nigeria (CBN) sold Naira at interbank market rate at N306.95 as against the dollar on Thursday.

The Naira at the interbank market of the CBN has remained flat at N306.95 for the fourth consecutive day trading from N306.90 the foreign exchange market opened this week.

In the parallel market, the Naira closed flat at N360, N475 and N406 against the Dollar, Pounds and Euro respectively on Thursday as the apex bank is yet to intervene this week.

At the Investors & Exporter Foreign Exchange ( I& EFX) window, while the Naira lost 0.03per cent against the dollar to close at N360.80, it gained 1.24per cent and 0.41per cent against the pounds and Euro to close at N470.42 and N404.39 respectively.

The Monetary Policy Committee of the CBN noted the relative volatility in oil prices and its impact on accretion to reserves which could easily undermine the stability observed in the foreign exchange market. It, however, noted that current developments in the oil futures market indicate that oil prices will remain considerably above the Federal Government’s 2019 budget benchmark.

Analysts said the foreign exchange market to continue to see support from CBN’s intervention sales.

At the fixed income market, Money market rates decreased today as Open Buy Back and Overnight rates declined from 15.14per cent  and 15.50per cent to close at 10.07per cent and 10.71per cent respectively. The decline in rates may be due to the maturity of N22billion worth of Open Market Operation bills as well as N619billion inflows from FAAC allocation which could have improved system liquidity.

The bond market was positive today with yields declining across most maturities. While the yields on the 5yr and 7yr benchmark bonds closed flat at 14.47% and 14.35%, the yield on the 10yr benchmark bond rose by 5bps to close at 14.14%.

“However, In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation,” analysts said.

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