I & E FX window: Naira trades flat at N409.75/$

By Kayode Tokede

Naira at the Investors & Exporters Foreign Exchange ( I & E FX) window traded flat at N409.75 against the Dollar on Wednesday.

The local currency gained by 0.29per cent and 0.36 per cent against the Euro and Pound Sterling closing at N482.50 and N562.72 respectively.

Our correspondent on Tuesday reported that Naira at the I & EFX lost 0.21per cent and 0.18 per cent against the Dollar and Pound Sterling closing at N409.75 and N566.54 respectively, it inched up by 0.04per cent against the Euro printed N485.06.

According to the FMDQ exchange, foreign exchange turnover of $148.54 million was traded by investors and exporters on Wednesday.

FMDQ exchange had said a foreign turnover of $32.33 million was traded at the I & E FX market on Tuesday.

The Central Bank of Nigeria (CBN) stated that Naira at the interbank market traded flat at N379 against the Dollar on Tuesday.

At the parallel market, while the Naira closed flat against the Dollar and Euro at N485 and N582 respectively, it gained 0.29per cent to close at N678 against the Pound sterling.

Money market rates increased today as Open Buy Back and Overnight rates rose by 242basis points and 300basis points to close at 12.67per cent and 13.50 per cent respectively.

The bond market was negative today as yields rose at the long end of the curve.

The yields on the 10-year benchmark bond rise by four basis points to print at 10.38 per cent, while the 5-year and 7-year benchmark bonds closed flat at 9.88 per cent and 10.10 per cent respectively.

“In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation,” analysts at investment one research added.

The country foreign reserve declined by 0.26per cent on Monday, 15th March 2021 to stand at $34.50 billion being a record low in 10 months.

The country’s external reserve declined from $34.59 billion recorded as of Friday, 12th March 2021 to stand at $34.50 billion as of 15th March 2021.

Nigeria’s current external reserve position indicates a total drop of about $500 million in the month of March 2021.


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