I & EFX window: Naira depreciates by 5.54% to N557.33/£

By Kayode Tokede

Naira at the Investors & Exporters Foreign Exchange ( I & E FX) window depreciated by 5.54 per cent to N557.33 against the pound sterling on Tuesday.

The local currency at I & E FX window traded appreciated by 0.34per cent to N408.60 against the dollar but lost 5.23 per cent to N480.28 against the euro.

According to the FMDQ Exchange, a turnover of $123.37 million traded by investors  & exporters window on Tuesday.

At the parallel market, while the Naira closed down by 0.75per cent and 0.34 per cent against the pound sterling and euro to close at N665 and N582 respectively, it closed flat at N480 against the dollar.

Our correspondent gathered that naira at inter-bank market of the Central Bank of Nigeria (CBN) traded flat at N379 against the dollar.

Analysts at Investment One research said, “Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.

“However, money market rates declined today as Open Buy Back and Overnight rates fell from 15 per cent and 15.25per cent to close at 1.75 per cent and two per ce”nt respectively.

The bond market was somewhat muted on Tuesday as the yields on the 5-year and 10-year benchmark bonds close flat at 9.60 per cent and 10.79 per cent respectively, while the yield on the 7-year benchmark bond closed down by 12bps to 10.33 per cent.

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