Naira trades flat at parallel market window

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Naira

By Kayode Tokede

The naira traded flat against the dollar at N362.00 and Euro to close at N362 and N477 respectively but lost 0.42per cent against pounds to close at N479 in the parallel market on Tuesday.

At the Investors & Exporters (I&E) foreign exchange window, while the naira lost 0.59 per cent and 0.32per cent against pounds and euro to close at N472.96 and N402.38 respectively, it closed flat against dollar to close at N362.38.

A total of $181.99 million was traded at the I & E FX window, according to the FMDQ OTC securities exchange.

“Going forward, we expect the foreign exchange market to continue to see support from CBN’s intervention sales,” analysts at InvestmentOne said.

At the money & fixed income markets, the overnight lending rate eased by 40basis points to 3.10 per cent, as the system liquidity remained buoyant.

Trading in the Treasury Bill (TB) secondary market was quiet, as yields across all segments were unchanged.

However, investors’ sell-offs on the mid and long-dated bills, led to a marginal yield expansion of two basis points at the OMO secondary market.

Trading in the Treasury bonds market was bullish, as the average yield dipped by 10bps to 10.15 per cent.

Yields contracted across the short (-one basis point) and mid (-three basis points) segments of the curve following buying interest in the JAN-2022 (-31 basis points) and FEB-2028 (-30 basis points) bonds, respectively.

On the flip side, a sell-off of the JUL-2034 (+five basis points) bonds, led to a marginal yield expansion at the long (+one basis points) end of the curve.

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