I & E FX: Naira appreciates by 3.98% to N394.30

By Kayode Tokede

Naira at the Investors & Exporters Foreign Exchange ( I& EFX)market appreciated significantly by 3.98 per cent as the dollar was quoted at N394.30 as against the last close of N410.25.

Most participants at the I & E FX window maintained bids between N385.00 and N412.05 per dollar.

However, naira at the parallel market, traded flat at N470.00 against the dollar in the parallel market.

As of Monday, the Overnight (O/N) rate increased by 0.67 per cent to close at 1.50 per cent as against the last close of 0.83 per cent, and the Open Buy Back (OBB) rate also increased by 0.50 per cent to close at one per cent from 0.50 per cent on the previous day.

With the current buoyant system liquidity levels, we expect the money market rates to remain subdued, barring any significant funding pressures on market participants.

NT-Bills secondary market closed on flat note with average yield across the curve remaining unchanged at 0.38 per cent. Average yields across short-term, and long-term maturities remained unchanged at 0.34 per cent, 0.37 per cent, and 0.58 per cent, respectively.

In the OMO bills market, the average yield across the curve declined by one basis point to close at 0.57 per cent from 0.58 per cent on the previous day.

Mild buying interest was seen across short-term and medium-term maturities with average yields falling by one basis point.

However, the average yield across long-term maturities closed flat at 0.90 per cent.

Yields on three bills compressed with the 23-Mar-21 maturity bill recording the highest yield decline of four basis points, while yields on 15 bills remained unchanged.