Naira closes at N360/$ at Parallel Market

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Naira

The naira last week appreciated to N360 to the dollar at the parallel market in Lagos. The pound sterling and the euro closed at N450 and N396, respectively.

At the FMDQ OTC Securities Exchange, a total turnover at the Investors & Exporters (I&E) window increased by 26.9per cent Week-Till-Date (WTD) to $930.22 million with trades executed within the N365.00-357.50/dollar band.

At the bureau de change (BDC) segment, the naira traded at N359.3 to the dollar, while the pound and the euro closed at N450 and N396, respectively.

Meanwhile, trading in the Treasury bills market was significantly bearish as, in addition to the Central Bank of Nigeria (CBN’s) OMO activity, increased risk-off sentiment, following escalating trade war tensions and the subsequent decline in oil prices, led to significant selloffs from foreign investors.

As a result, the average yield widened by 136 basis points wee-on-week (w/w) to close at 12.57per cent, with investors selling off across the short (+186 basis points), mid (+152 basis points) and long (+94 basis points) tenor segments.

Trading in the Treasury bonds market was also bearish, as risk-off sentiments filtered into the market. After six consecutive weeks of gains, with yields falling 95 basis points in the period, there was significant profit-taking from foreign investors.

Consequently, the average yield across instruments rose by 40 basis points w/w to 13.81per cent. Investors sold off at the short (+47 basis points), mid (+40 basis points) and long (+30 basis points) segments with respective yields on the FEB-2020 (+130 basis points), FEB-2028 (+43 basis points) and APR-2037 (+57 basis points) recording the largest expansions.

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