Naira at I & E FX window appreciates by 0.02% to N411.40/$
By Kayode Tokede
Naira at Investors & Exporters Foreign Exchange (I& EFX) window closed up by 0.02 per cent against the Dollar to close at N411.40 on Wednesday.
The local currency lost by 0.14per cent and 0.23per cent against the Euro and Pound sterling to close at N482.47 and N570.42 respectively.
According to FMDQ Exchange, foreign exchange turnover of $132.42million was traded by investors & Exporters on Wednesday.
Meanwhile, the FMDQ, foreign exchange turnover/ declined/ from $166.06 million recorded on Monday 2021 to $122.52 million on Tuesday.
At the parallel market, while the Naira depreciated by 0.98per cent against the Dollar closing at N515, it closed flat against the pound sterling and Euro at N703 and N596 respectively.
Also, naira remained stable at the parallel market to close at N510 against the Dollar on Tuesday, the same rate that it traded the previous day.
The local currency maintained stability across the forex markets, as the CBN appears determined to reduce the influence of currency traders in the foreign exchange market.
“Going forward, we expect the FX market to be dictated by heightened Dollar demand and CBN FX policies,” analysts at investment one research explained.
Money Market rates increased as both Open Buy Back and Overnight rates increased by 400basis points each to 17 per cent and 17.50per cent respectively.
The bond market traded on a positive note today with yields declining across most maturities.
The yields on the 5yr, 7yr and 10yr benchmark bonds fall by 27basis points, 30bps and 18 basis points to 11.40 per cent, 11.90 per cent and 12.17 per cent respectively.
“In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation,” they added.
However, the Central Bank of Nigeria (CBN) said, Nigeria’s foreign reserve rose marginally by $6 million on Monday to close at $33.568 billion compared to $33.562 billion recorded as of 6th August 2021.
Since the reserve started moving positively, it has gained over $474.1 million in 27 days, despite enduring a significant plunge in the previous months.
Recall that the Central Bank of Nigeria banned the sale of foreign exchange to Bureau De Change (BDC) operators in the country, due to reports of the operators’ illegal trading of the Dollar, trading beyond the limit threshold of $5,000 and gradually dollarizing the Nigerian economy, according to the CBN governor.
