I & E FX market: Naira depreciates by 0.59% to N398.50/$

By Kayode Tokede

Naira at the Investors & Exporters Foreign Exchange (I & E FX) market depreciated by 0.59 per cent to N398.50 against the dollar on Monday.

Also, the naira closed up by 0.08 per cent against the euro to N456.28 at the  I & E FX market but closed flat at N520.56 against the pound sterling.

According to FMDQ, a turnover of $57.78million was traded by Investors and exporters on Monday.

At the parallel market, while the naira closed flat against the dollar at N480, it gained by 0.52per cent against the euro to close at N575. In addition, the naira against the pound sterling closed down by 0.31per cent printing at N655.

Our correspondent gathered that naira at the inter-bank market of the Central Bank of Nigeria (CBN) traded flat at N379.00 against the dollar on Monday.

“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 fell today as Open Buy Back and Overnight rates dropped by 350 basis points and 375 basis points to close at 14.00 per cent and 14.25 per cent respectively.

“The bond market was somewhat negative today as yields rose across most maturities across the curve.

“Consequently, we witnessed the yields on the 5yr and 10yr benchmark bonds rise by 91 basis points and 131 basis points closing at 8.40 per cent, and 10.19 per cent respectively. Against the 7yr bond, it printed flat at 8.41 per cent.

“In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation,” they added.