Naira trades flat at N306/$ amid CBN’s $210m injection

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The Naira traded flat at N306 at interbank market despite Central Bank of Nigeria (CBN) $210 million injection in the foreign exchange market.

In the parallel market, the Naira remained unchanged against the Dollar at N360 on Tuesday but gained 0.42per cent and 0.96per cent against Pound and Euro to close at N475 and N414 respectively.

The Naira was weakened by 0.09per cent to N362.30 in the Investors &Exporters Foreign exchange window.

Total value of trades on Investors & Exporters Foreign exchange window dropped by 62.8per cent to $138.53 million, consummated within the N359-N363.75/ Dollar band.

The apex bank injected $210 million into the inter-bank Foreign Exchange Market to meet customers’ requests in various segments of the market.

The CBN Acting Director of Corporate Communications, Mr. Isaac Okorafor in a statement on Tuesday, said that 100 million dollars was offered to authorised dealers in the wholesale segment of the market. He said $55 million was allocated to the Small and Medium Enterprises (SMEs) segment while customers who require foreign exchange for tuition fees, medical payments and Basic Travel Allowance (BTA) were allocated $55 million.

Okorafor reassured the public that the bank would continue to intervene in the foreign exchange market in line with its quest to sustain liquidity in the market and maintain stability.

He said that the steps taken so far by the bank in the management of the market had paid off, as reflected by reduction in the country’s import bills and accretion to its foreign reserves.

Meanwhile, the Naira exchange rate remained stable in the foreign exchange market. It exchanged on Tuesday at an average of N360 to a dollar in the Bureau De Change segment of the market.

Meanwhile, the overnight lending rate dropped by eight basis points (bps), to close at 8.42per cent, amidst stable system liquidity.

Proceedings in the treasury bills market were bearish, as average yield rose by 13 bps to 11.91per cent. Yields expanded across the short (+13 bps), mid (+12 bps), and long (+16 bps) ends of the curve, owing to selloffs of the 44DTM (+28 bps), 170DTM (+36 bps), 226DTM (+29 bps) bills.

Sentiments were mixed in the bond market, as average yield was flat, once again, at 13.86per cent. Demand for the FEB-2020 (-41 bps) and MAR-2036 (-6 bps) bonds led to yield contraction at the short (-7 bps) and long (-2 bps) segments, respectively. Conversely, yield at the mid (+6 bps) end of the curve expanded, following a selloff of the MAR-2027 (+19 bps) bond.

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