I & EFX window: Naira trades flat at N386/$ on Monday

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By Kayode Tokede

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

The local currency was traded by N386.00 against the Dollar at the I & E FX window as pressure was on other foreign exchange.

According to the FMDQ Securities Exchange, a total of $133.73 million was traded by Investors & Exporters on Monday.

While the Naira inched up by 0.11 per cent against the Euro to close at N442.03, it fell against the Pounds by 0.45 per cent to close at N487.48.

At the parallel market, while the Naira closed flat against the Pounds and Dollar at N600 and N467 respectively, it appreciated by 0.55per cent to close at N545 against the Euro.

The naira at the interbank market of the Central Bank of Nigeria (CBN) traded flat N379.00 against the Dollar on Monday.

“Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies,” analysts at Investment research explained.

Money market rates dropped today as Open Buy Back and Overnight rates declined from 10.33% and 11.50 per cent to 3.00 per cent and 4.00per cent.

At the Treasury bond secondary market, trading was bullish, as average yield pared by two basis points  to 6.9per cent.

Across the curve, average yield contracted at the short (-4 per cent) and long (-10 per cent) ends, following demand for the JUL-2021 (-17b per cent) and MAR-2050 (-26bps) bonds, respectively. Conversely, average yield at the mid (+13 per cent) segment expanded, due to sell-offs of the FEB-2028 (+43bps) bond.

The bond market was positive today as yields declined at the short and long end of the curve. While the yields on the 5yr and 7yr benchmark bonds declined by one basis point each to 4.25 per cent and 6.75 per cent respectively, we witnessed the yield on the 10yr benchmark bond close flat at nine per cent.

“In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation,” analysts at InvestmentOne Research explained.