I & E FX window: Naira appreciates by 0.33% to N409.65/$
By Kayode Tokede
Naira at the Investors & Exporters Foreign Exchange (I & EFX) window on Thursday gained 0.33per cent and 0.35per cent against the Dollar and Pound Sterling closing at N409.65 and N560.38 respectively.
The local currency inched down by 0.03per cent against the Euro at the I& E FX window to close at N486.09.
The foreign exchange turnover at the I & E FX window, according to FMDQ was $93.69million on Thursday.
Data obtained from the FMDQ Security Exchange at the close of trading indicated that transactions turnover at the FX window stood at $11.85million, the same volume traded on Wednesday, however, lower than $40.80million recorded on Tuesday and $35.55 million posted a week ago.
At the parallel market, the Naira closed flat against the Pound Sterling, Dollar and Euro at N670, N485 and N573 respectively.
Our correspondent gathered Naira at the interbank market of the Central Bank of Nigeria (CBN) traded flat at N379 against the dollar.
Money market rates closed up today with Open Buy Back and Overnight rates increasing by 183bps and 150basis points to 14.50per cent and 15.00 per cent respectively.
The bond market was somewhat negative today with yields rising at the long end of the curve. While we witnessed yields on the 5-year and 7-year benchmark bonds close flat at 10.04 per cent and 10.95 per cent respectively, the yield on the 10-year benchmark bond rose by 34basis points to close at 11.51 per cent.
“In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation,” analysts at Investment One research said.
According to the CBN, the nation’s foreign reserve gained $129.8 million on Tuesday, 6th April 2021 to close at $34.98 billion, the highest single-day gain recorded in about 3 months.
This indicates a 0.37per cent increase when compared to $34.85 billion recorded on Thursday 1st April 2021.
This also represents the 11th consecutive increase in the country’s external reserve position having endured a significant downturn in the early parts of the year. Nigeria’s reserve has added a total of $558.8 million in 11 days.
This recent growth could however be attributed to the increase in crude oil prices recorded earlier in March and the possible increase in diaspora remittance as the CBN offers incentives for every unit of dollar received from diaspora remittance.
Nigeria will now hope for the reserve to $40 billion so as to be able to meet up with pent-up demand that had accumulated since the crash of crude oil price in 2020.
