I & E FX window: Naira depreciates by 0.17% to N393.33/$

By Kayode Tokede

Naira at the Investors & Exporters Foreign Exchange Window ( I & E FX) window depreciated by 0.17 per cent to N393.33 against the dollar on Wednesday.

The local currency also inched down by 0.22per cent and 0.07 per cent against the euro and pounds to close at N462.82 and N518.89 respectively.

Findings by our correspondent revealed that investors and exporters traded $17.23 million on Wednesday as against $36.07 million reported by FMDQ Exchange on Tuesday.

At the parallel market, while the naira gained 0.21per cent against the dollar to close at N474, it closed flat against the euro and pounds at N580 and N637 respectively.

Our correspondent also gathered that naira at the interbank market of the Central Bank of Nigeria (CBN) traded 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 explained.

However, the money market rates fell today as Open Buy Back and Overnight rate decreased by 150basis points each to 1.50per cent and two per cent respectively.

The bond market was quiet today as yields remained flat across most maturities. Consequently, we witnessed the yields on the 5yr, 7yr and 10yr benchmark bonds close flat at 5.55 per cent, 6.52 per cent and 7.69 per cent respectively.

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