FMDQ reports $171.85m trade on I & E FX window
By Kayode Tokede
FMDQ Exchange reported $171.85miillion turnover traded at its Investors & Exporters Foreign Exchange (I & E FX) window on Thursday.
This is 394.4per cent increase when compared to $34.76 million traded at the I & E FX window on Wednesday.
FMDQ had reported foreign exchange turnover increased from $33.11 million/ recorded on Tuesday.
However, at the I & E FX window, the Naira on Thursday gained by 0.26per cent and 0.32 per cent against the Dollar and Euro closing at N408.75 and N480.06 respectively, it shed 0.25per cent against the Pound sterling printing at N559.30.
Naira appreciated against the Dollar at the I & E FX window on Wednesday to close at N408.75 against the Dollar.
This represents a N1.05k gain when compared to N409.8 against the Dollar recorded on Tuesday.
The opening indicative rate closed at N408.98 to a dollar on Wednesday. This represents an 80 kobo gain when compared to N409.78 against the Dollar on Tuesday.
Also, an exchange rate of N414 to a dollar was the highest rate recorded during intra-day trading before it closed at N408.75 against the Dollar. This represents the highest rate recorded in almost two weeks.
At the parallel market, the Naira closed flat against the Euro, Pound Sterling and Dollar at N580, N680 and N486 respectively.
Hitherto, Naira at the parallel market on Wednesday remained relatively stable, as it closed at N486 against the Dollar, which is the same as recorded in the previous trading session.
The local currency at the inter-bank market of the Central Bank of Nigeria (CBN) traded flat at N379 against the Dollar.
“Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies,” analysts at Investment One research explained.
Meanwhile, Money market rates increased today as Open Buy Back and Overnight rates rose by 200 basis points and 175 basis points to 15.50per cent and 15.75 per cent respectively.
The bond market was quiet today as yields remained flat across the curve.
The yields on the 5-year, 7-year and 10-year benchmark bonds close flat at 9.85 per cent, 10.13 per cent and 10.72 per cent respectively.
“In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation,” analysts at Investment One research added.
The country’s foreign reserve increased by 0.08per cent on Tuesday to stand at $34.62billion, according to the CBN.
This represents the third consecutive increase in three days, gaining a total of $182.27 million from $34.42 billion recorded as of March 18, 2021 to $34.6 billion as of 23rd March 2021.
The foreign exchange buffer had lost $957.26 million year-to-date before recording increases in the past three days, which could be attributed to the recent gain in the global crude oil market.
Nigeria will hope to continue in this trajectory, as the increase in foreign reserves indicates more foreign exchange to meet up with the nation’s demand.
