The Central Bank of Nigeria (CBN) has revealed that Nigeria has an estimated $16 billion in domiciliary accounts of commercial and merchant banks.
According to data contained in the apex bank’s statistical bulletin, Nigeria had a total domiciliary account balance of N6.566 trillion as of March 2021 which when converted to dollars at the official rate of N410/$1, translates to about $16 billion.
A further breakdown of the amount reveals corporates own about N4.478 trillion ($11 billion), while retail depositors own about N1.798 trillion ($4.38 billion). The balance is owned by states and local governments and other public institutions.
Meanwhile, the naira appreciated by 0.4per cent week-n-week (w/w) to N413.38 against the dollar at the Investors & Exporters (I&E) window but depreciated by 0.4 per cent w/w to N574.00 against the dollar at the parallel market.
At the I & E, total turnover (as of 29th September 2021) decreased by 19.9 per cent WTD to $711.30 million, with trades consummated within the N404.00 – 448.53 against the dollar band.
In the Forwards market, the rates on the 1-month (+0.1% to N415.06/USD), 3-month (+0.5% to N420.22/USD), 6-month (+0.8% to N428.06/USD), and 1-year (+1.5% to NGN443.78/USD) contracts reflected the appreciations of the naira to the greenback.
According to analysts at Cordros Capital, “We expect improved liquidity in the IEW over the medium term, given our expectation of (1) increased oil receipts in line with the rise in crude oil prices and (2) inflows from FCY borrowings ($6.18 billion) and IMF SDR ($3.50 billion). Accordingly, we expect the naira to remain relatively range-bound (N410.00/dollar – N415.00/USD) at the I& EFX.”
The Treasury Bonds secondary market traded with mixed sentiments, albeit with bullish bias, as inflows from bond coupon payments supported demand levels despite sell pressures observed after the slight uptick in bond and NTB auction stop rates. Overall, the average yield pared by three basis points to 11.2per cent.
Across the benchmark curve, the average yield declined at the short (-28 basis points), mid (-3 basis points) segments following demand for the APR-2023 (-45 basis points) and MAR-2027 (-6 basis points), respectively. Elsewhere, it expanded at the long (+13 basis points) end as investors upwardly repriced the JUL-2045 (+54basis points) bond.