I & E FX Window: Naira depreciates by 0.31% to N411/$
By Kayode Tokede
Naira at the Investors & Exporters Foreign Exchange (I & E FX) window on Tuesday depreciated by 0.31 per cent to close at N411 against the Dollar.
It also depreciated against the Euro by 0.11 per cent to close at N487.48 but inched up by 0.12 per cent against the Pound Sterling printing at N561.15.
Naira had depreciated against the Dollar at the I& E FX window on Monday to close at N409.75 to a dollar. This represents a 75 kobo drop when compared to N409/$1 recorded on Friday.
The opening indicative rate closed at N410.88 to a dollar on Monday. This represents a N1.09 drop when compared to N409.79/$1 recorded on Friday.
A foreign exchange turnover of $53.53million was traded at the I & E FX window on Tuesday, according to FMDQ.
Our correspondent gathered that foreign exchange turnover at the II&E window dropped by 17.9per cent on Monday.
According to FMDQ, the foreign exchange turnover declined from $55.21 million recorded on Friday, April 9, 2021, to $45.35 million on Monday
However, Naira at the parallel market closed flat against the Euro, Pound Sterling and Dollar at N570, N670 and N482 respectively.
Our correspondent gathered that Naira at the Central Bank of Nigeria (CBN) interbank market traded flat at N397 against the Dollar on Tuesday.
According to analysts at Investment one research, “Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.”
Money market rates inched up today with Open Buy Back and Overnight rates increasing by 25basis points and 50bps to 12.25 per cent and 12.75 per cent respectively.
The bond market was somewhat negative today with yields rising on some maturities.
The yields on the 5-year and 7-year benchmark bonds close flat at 10.49 per cent and 10.94per cent respectively, the yield on the 10year benchmark bond rose by three basis points to close at 11.72 per cent.
According to the CBN, the country’s external reserve gained $30 million on Friday to close at $35.036 billion, being the highest external reserve position recorded in over a month.
This indicates a 0.09per cent increase when compared to $35.006 billion recorded on Thursday.
It also represents an increase in the country’s external reserve position for the 14th consecutive day, having endured a significant downturn earlier in the year. Nigeria’s reserve has added a total of about $620 million in 14 days.
This recent increase in Nigeria’s external 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.
