FMDQ reports $98.91m total FX trade on I & E window

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By Kayode Tokede

FMDQ Exchange has reported $98.91million total foreign exchange at Investors & Exporters window on Tuesday.

This is against $125.44million total trade report by the FMDQ on Monday.

However, Naira at the IEFX window, gained by 0.54per cent and 0.12 per cent against the Pound Sterling and Euro closing at N581.85 and N502.69 respectively, it remained flat against the Dollar printing at N412.00.

Our correspondent had reported that Naira at I& E FX window traded flat at N412 against the Dollar Monday but lost by 0.32 per cent and 0.41per cent against the Pound Sterling and Euro closing at N584.35 and N502.88 respectively.

Meanwhile, at the parallel market, while the Naira lost by 0.61per cent and 0.17 per cent against the Dollar the Dollar and Euro closing at N498 and N597 respectively, it remained flat against the Pound Sterling printing at N700.

The exchange rate between the Naira and the Dollar closed at N412 against the Dollar at the Nigerian Autonomous Foreign Exchange window (NAFEX).

“Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies,” according to analysts at Investment One research.

Money market rates dropped today as the Open Buy Back and Overnight rates fell by 50basis points and 33basis points to close at 12 per cent and 12.67per cent respectively.

The bond market traded on a quiet note today with yields only declining slightly across few maturities. The yield on the 7-year benchmark bond shed six basis points to close at 12.98per cent, while the yields on the 5-year and 10-year benchmark bonds closed flat at 12.55per cent and 13.21per cent respectively.

Nigeria’s external reserve dropped by $4.11 million on Friday, 28th May 2021 to stand at $34.24 billion, representing a 0.01per cent decline when compared to $34.25 billion recorded on Thursday, 27th May 2021.

Nigeria’s foreign reserve has lost about $1.13 billion year-to-date, having recorded consecutive declines in about a month.

The country’s foreign reserve has continued to dip since April 19, 2021, despite the bullish trend recorded in the global oil market.

This is, however, attributable to low sales of Nigerian crude oil, due to the resurgence of the COVID-19 pandemic in India.