Naira gains 0.15% to N364.48 against dollar at I&E FX window


By Kayode Tokede

The naira traded flat against the dollar at N360.00/USD in the parallel market while it strengthened by 0.15per cent to N364.48/USD at the Investors & Exporters (I&E) foreign exchange window. At the parallel market, the Naira remained flat at N360, N473 and N392 against dollar, pounds and euro respectively. “Going forward, we expect the FX market to continue to see support from CBN’s intervention sales,” analysts at InvestmentOne explained.

Trading in the NTB secondary market remained quiet, as the yields across all instruments were unchanged at 4.05per cent. Elsewhere, average yield contracted by 65basis points to 12.2per cent in the OMO secondary market. Money market rates were mixed today as Open Buy Back increased by 13bps to close at 3.33per cent while Overnight rates declined by two basis points to close at 4.08%. Rates were somewhat stable today as a result of the OMO auction which might have offset part of OMO maturities.

At the OMO auction conducted, Central Bank of Nigeria (CBN) sold a total of N300billion worth of OMO bills, split between the 89-day, 180-day and 362-day bills at respective stop rates of 11.45 per cent, 11.59 per cent  and 13.02 per cent.

The stop rates for the 180-day and 362-day bills declined by eight basis points and nine basis points respectively. The bond market was broadly positive today as yields declined across most tenors. As such, while yields on the 5yr and 10yr benchmark bonds declined by 9 basis points and 13 basis points to close at 9.05 per cent and 10.66 per cent respectively, it remained flat on the 7yr benchmark bond to close at 9.98per cent.

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


Please enter your comment!
Please enter your name here