By Kayode Tokede
The Central Bank of Nigeria (CBN) has disclosed that the nation’s foreign reserves gained $61.2million in three days from $35.14 billion on Monday to $35.19billion as at Wednesday.
The foreign reserves, according to Nigerian NewsDirect investigation reached the highest position recorded in over a month.
The increase represents an increase in the country’s external reserve position for the 16th consecutive day, having endured a significant downturn earlier in the year. Nigeria’s reserve has added a total of about $756 million in 16 days.
The recent increase in foreign reserve could however be attributed to the increase in crude oil prices recorded earlier in March before the recent bearish trade in the crude market.
It could be attributed to the possible increase in diaspora remittance as the CBN offers incentives for every unit of a dollar received in Nigeria from diaspora remittance.
The external reserve is likely to get a further boost, as the Federal Government recently announced plans to issue $500 million Eurobonds for 2021.
However, Naira at the Investors & Exporters Foreign Exchange (I & E FX) window gained by 0.12per cent, 0.10 per cent and 0.29 per cent against the Dollar, Pound Sterling and Euro closing at N410.50, N562.44 and N488.08 respectively.
According to FMDQ, a turnover foreign exchange of $116.16 million was traded by investors and exporters on Thursday, while a total foreign exchange turnover of $21.92 million was traded by investors & exporters on Wednesday.
Nigerian NewsDirect had reported that a foreign exchange turnover of $53.53million was traded at the I & E FX window on Tuesday, according to FMDQ.
At the parallel market, the Naira closed flat against the Euro, Pound Sterling and Dollar at N572, N672 and N482 respectively.
The Naira had remained stable against the dollar for the second day at the parallel market on Wednesday to close at N482 to a dollar, the same rate that was recorded on Tuesday.
At the interbank market of the CBN, the local currency 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 added.
Money market rates were up today with Open Buy Back and Overnight rates increasing by 250basis points and 275basis points to 14.50per cent and 15 per cent respectively.
The bond market was somewhat negative today, particularly at the midpoint of the curve, with yields rising on some maturities.
The yields on the 7-year and 10-year benchmark bonds rise by 57basis points and 38 basis points at 11.95 per cent and 12.17 per cent respectively, the yield on the 5-year benchmark bond was flat at 11.93 per cent.