I & E FX window: Naira appreciates by 0.16% to N410.33/$
By Kayode Tokede
Naira at the Investors & Exporters Foreign Exchange window ( I& EFX) on Monday appreciated by 0.16 per cent to close at N410.33 against the Dollar.
Also, Naira at the I& EFX window, lost by 0.43per cent and 1.05per cent against the Euro and Pound Sterling closing at N492.71 and N572.60 respectively.
A turnover of $69.71 million was traded by the Investors & Exporters on Monday, according to FMDQ.
At the parallel market, while the Naira closed flat against the Pound sterling and Dollar at N670 and N482 respectively, it gained 0.35per cent against the Euro to close at N570.
Nigerian NewsDirect gathered that Naira at the interbank market of the Central Bank of Nigeria (CBN) traded flat at N379 against the Dollar.
Analysts at Cordros capital had expressed that, “We expect improved liquidity in the I& E FX window over the medium term, given higher oil prices and an expected increase in crude oil production volume. “Accordingly, we expect the naira to remain relatively range-bound (N410.00/$ – N415.00/$) at the IEW.
“Similarly, we believe the CBN will devalue the naira by 5.3per cent to N400.00/$ at the interbank market to narrow the gap with the I & E FX rate.”
Money market rates fell today with Open Buy Back and Overnight rates declining from 25per cent and 28.33 per cent to 12.25 per cent and 12.50 per cent respectively.
The bond market was quiet today with yields closing flat across most maturities.
The yields on the 5-year and 10-year benchmark bonds close flat at 11.93 per cent and 12.17 per cent respectively, while the yield on the 7-year benchmark bond fell by five basis points to close at 12.11 per cent.
According to the CBN, the country’s foreign reserves closed Friday at $35.25billion.
The foreign exchange buffer increased by 0.08per cent on Thursday to stand at $35.23 billion.
This represents the 18th consecutive increase in Nigeria’s foreign reserves position having gained $804.77 million since 18th March 2021, about a month ago.
Nigeria’s external reserve has received a consistent boost in recent times, owing to the growth in the price of crude oil and its policy to pay Nigerians for any unit of dollar received from the diaspora.
Meanwhile, the country’s reserve position is set to receive a further boost as the Federal Government announced its plans to issue 500 million Eurobonds for 2021.
