Naira appreciates by 0.08% to N409.80/$, as FX reserves hit $34.46
By Kayode Tokede
Naira at the Investors & Exporters Foreign Exchange ( I & E FX) window gained by 0.08 per cent to close at N409.80 against the Dollar on Tuesday.
Naira also gained by 0.60per cent and 0.63 per cent against the Euro and Pound Sterling closing at N485.47 and N563.86 respectively.
A foreign exchange turnover of $33.11 million was traded by investors and exporters on Tuesday.
At the parallel market, the Naira closed flat against the Pound Sterling, Dollar and Euro at N680, N486 and N582 respectively.
Naira at the interbank market rate traded flat at N379 against the Dollar.
“Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies,” analysts at Investment One research said.
Money market rates decreased today as Open Buy Back and Overnight rates fell by 300basis points and 275basis points to 11.50per cent and 12.00 per cent respectively.
The bond market was quiet today as yields remained flat on most maturities.
The yields on the 5-year, 7-year and 10-year benchmark bonds close flat at 9.86per cent, 10.13 per cent and 10.59 per cent respectively.
“In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation,” they added.
The apex bank disclosed nation’s foreign reserves moved to $34.46billion as at March 19, 2021.
The foreign exchange buffer had declined by 0.07 on Thursday, 18 March 2021 to stand at $34.42 billion being a record low in over 10 months.
The country’s external reserve declined from $34.44 billion recorded as of Thursday, 18th March 2021 to stand at $34.42 billion as of 19th March 2021.
The last time Nigeria’s external reserve position, dropped to this low, was on the 8th of May 2020, when the reserve stood at $34.29 billion
Meanwhile, the latest decline indicates that Nigeria’s current external reserve position has lost about $683.2 million in the month of March 2021.
It is worth noting that the recent bearish run at the global crude oil market could further dip the country’s external reserves as Brent Crude oil is currently selling at $60.96 per barrel.
