By Kayode Tokede
Naira against the Dollar on Thursday appreciated by 0.12 per cent to N411.50 from N411.54 against the Dollar it closed on Wednesday.
The local currency at the I & E FX window thus lost by 0.70per cent and 1.97per cent against the Pound Sterling and Euro closing at N570.44 and N488.06 respectively.
According to FMDQ Exchange, a total foreign exchange of $138.20million was traded on Thursday.
Foreign exchange turnover at the Investors and Exporters window decreased by 23.4per cent on Wednesday.
FMDQ had reported foreign exchange turnover drop from $172.24 million/ recorded on Tuesday to $131.86 million on Wednesday.
At the parallel market, the Naira closed up by 1.79per cent, 1.33per cent and 0.70per cent against the Dollar, Euro and Pound Sterling at N493, N600 and N710 respectively.
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 rose today as Open Buy Back and Overnight rates were up by 225basis points and 250basis points to 18.25 per cent and 18.75per cent respectively.
The rise in rates may not be unconnected with the CBN’s OMO auction today which may have squeezed system liquidity.
The bond market traded on a slightly positive note today, particularly towards the long end of the curve.
The yields on the 7-year and 10-year benchmark bonds close flat at 12.78per cent and 13.15per cent respectively, while the yield on the 5-year benchmark bond was up by 12basis points to 12.52per cent.
Nigeria’s foreign reserves plunged further on Tuesday, as it dipped by $120.2 million to close at $33.8 billion.
This indicates the highest single-day loss in almost four months, since February 2021. It also represents a 0.35per cent reduction in Nigeria’s external reserve position and the lowest level since April 2020.
A total of $1.5 billion has been lost in reserves year-to-date, while month-to-date loss stands at $380.1 million.
The decline has persisted despite the gains recorded in the global crude oil price. Oil prices are already trading over $74 per barrel.
This is largely attributed to the decline in crude oil sales, due to the effect of the covid-19 pandemic on the buying capacity of India, which is one of the world’s largest importers of oil.
However, reports suggest that India’s oil imports are beginning to pick up. This comes as good news to Nigeria as India is one of the highest importers of Nigerian crude oil.