Naira depreciates by 0.21% to close at N411.88/$

By Kayode Tokede

Naira at the Investors & Exporters Foreign Exchange Window ( I & EFX) on Monday depreciated by 0.21 per cent to close at N411.88 against the Dollar.

The local currency gained 0.34per cent and 0.61per cent against the Pound Sterling and Euro at I & E FX window to close at N563.85 and N484.10 respectively.

The FMDQ stated that a turnover of $32.58million was traded by investors and exporters on Monday.

At the parallel market, while the Naira closed flat against the Pound Sterling at N675, it lost 0.41per cent and 0.17per cent against the Dollar and Euro to close at N482 and N583 respectively.

The local currency at the Central Bank of Nigeria (CBN) inter-bank market traded flat at N379 against the Dollar on Monday.

According to analysts at InvestmentOne Research “Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.”

Money market rates decreased today as Open Buy Back and Overnight rates fell by 383bps and 458bps to close at 11.50 per cent and 11.75per cent respectively.

The bond market was quiet today as yields remained unchanged on most maturities. Consequently, the yields on the 5yr, 7yr and 10yr benchmark bonds close flat at 9.96 per cent, 10.10 per cent and 10.40per cent respectively.

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