Naira appreciates by 0.08% to N414.73/$

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By Kayode Tokede

Naira at Investors & Exporters Foreign Exchange (I& E) window on Monday appreciated by 0.08 per cent to close at N414.73 against the dollar.

The local currency, however, depreciated by 0.02per cent and 0.36per cent against the pound sterling and euro at N567.87 and N480.50 respectively.

Naira appreciated had significantly against the dollar on Friday, after enduring a huge fall to N422.07 against the dollar on Thursday.

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

Money market rates decreased today as Open Buy Back and Overnight rates fell by 450basis points each to close at 15per cent and 15.50per cent respectively.

The bonds market traded on a somewhat negative note today as yields rose on most maturities.

The yields on the 5yr and 7yr benchmark bonds closed flat at 10.90 per cent and 11.71 per cent respectively, while the yield on the 10yr benchmark bond closed up by 8bps to settle at 12.09per cent.

Nigeria’s foreign reserve gained $200.21 million on last Thursday to close at $39.62 billion compared to $39.42 billion recorded as of the previous day. The latest increase represents a 0.51per cent increase in the country’s foreign reserve.

The nation’s foreign reserve has gained $2.84 billion so far in the month of October, higher than the $2.76 billion gain recorded in September 2021, while the recent gain puts the year-to-date gain at $4.25 billion.

The recent increase in the reserve position, which has continued since the 25th of August is in line with a recent report suggesting that Nigeria’s foreign reserve position could grow as high as $40 billion by the end of September 2021.

It is worth noting that the reserve is closing in on hitting the $40 billion mark, with the $4 billion raised by the federal government through Eurobond sourced from the international debt market.