I & E FX window: Naira appreciates by 0.11% to N410.83/$

By Kayode Tokede

Naira at the Investors & Exporters Foreign Exchange ( I & EFX) window appreciated by 0.11 percent to close at N410.83 against the Dollar on Tuesday.

The local currency also gained by 0.33 percent and 0.35percent against the Pound Sterling and Euro closing at N568.00 and N487.87 respectively.

Naira appreciated against the Dollar to close at N411.08/$1 on Monday, representing a 0.09percent gain compared to N411.67 to a dollar recorded on Friday.

According to the FMDQ Exchange, a foreign exchange turnover of $215.53 million was traded by investors and exporters.

The foreign exchange turnover at the I&E window declined by 12.3percent on Monday.

The FMDQ Exchange had revealed that foreign exchange turnover reduced from $114.53 million/ recorded on Friday to $100.48 million on Monday.

At the parallel market, while the Naira appreciated by 0.83percent to close at N595 against the Euro, it closed flat against the Dollar and Pound Sterling at N502 and N710 respectively.

On the other hand, the exchange rate at the parallel market depreciated by 0.4percent to close at N502/$1 compared to N500/$1 recorded the previous day.

An exchange rate of N420.9 to a dollar was the highest rate recorded during intra-day trading before it settled at N411.28/$1, while it sold for as low as 400/$1 during intra-day trading.

Money market rates fell today as Open Buy Back and Overnight rates dropped by 175bps and 200basis points to close at 16.75percent and 17.25percent respectively.

The bond market traded on a somewhat positive note today as yields declined on some tenures. While the yield on the 5-year benchmark bond close flat at 12.60percent, the yield on the 7-year benchmark bond decreased by 6bps to 12.41percent.

Conversely, the yield on the 10-year benchmark bond rose by 8 basis points  to 12.70percent.

Nigeria’s external reserve plunged further on Friday, 25th June 2021, by $27.29 million to close at $33.52 billion. This represents a 0.08% decline compared to the $33.55 billion recorded the previous day.

According to the Central Bank of Nigeria (CBN), the country’s foreign reserve fell to its lowest position since October 2017, as its year-to-date decline hits $1.85 billion, while its month-to-date decline stands at $709.24 million.

Despite the recent bullish trend recorded in the oil market, Nigeria’s foreign exchange reserve continues to plunge. The decline may be attributed to reduced foreign exchange earnings, especially from crude oil export due to the cut in production quota.