Interbank FX window: Naira trades flat at N379/$

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By Kayode Tokede

Naira at the interbank of the Central Bank of Nigeria (CBN) traded flat at N379 against the dollar on Tuesday.

The local currency has been trading flat since November since it hit N380 against the dollar on October 5, 2020.

The local currency at the Investors & Exporters Foreign Exchange (I & E FX) window depreciated by 1.09per cent and 0.80 per cent against the pound and euro to print at N507.27 and N454.18 respectively, but inched up by 0.31per cent to print at N384.80 against the dollar. .

According to FMDQ Exchange, a total trade on I & E FX window on Tuesday was $58.85million.

A total turnover of $111.38million was traded on the I & E FX window on Monday.

At the parallel market, while the Naira lost 0.16 per cent and 0.71 per cent against the pound and euro to close at N608 and N557 respectively, it closed flat at N475 against the dollar.

According to InvestmentOne research, “Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.

“Money market rates were mixed today as Open Buy Back rate rose by 25 basis points to 0.75 per cent, while Overnight rate printed flat at one per cent.

“The bond market was positive today as yields inched down across most tenures. While we witnessed the yields on the 5yr and 10yr benchmark bonds decline by one basis point and 31 basis points to close at 2.36 per cent and 4.42 per cent respectively, the yield on the 7yr benchmark bond closed flat at 3.65 per cent.

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