Naira at I& E FX window appreciates by 0.16%

Naira at Investors & Exporters Foreign Exchange (I & E FX) window on Wednesday appreciated by 0.16 per cent to close at N414.07 against the dollar.

The local currency, however, depreciated by 0.12 per cent and 0.07 per cent to close against the pound and euro at N570.78 and N481.19 respectively.

Naira had appreciated further against the US dollar to close at N414.73/$1 on Monday. The exchange rate gained marginally by 0.08% from N415.07/$1 recorded on Friday.

In the same vein, naira gained 0.09% to N572/$1 on Monday, 18th October 2021 compared to N573.5/$1 recorded as of the close of trade on Friday, 15th October 2021.

Money market rates decreased today as Open Buy Back and Overnight rates fell by 50bps each to close at 14.50per cent and 15 per cent respectively.

The bonds market traded on a neutral note today as yields closed flat on most maturities. The yields on the 5year, 7year and 10year benchmark bonds closed flat at 10.90 per cent, 11.71 per cent and 12.09 per cent respectively.

However, the Central Bank of Nigeria (CBN) said foreign reserve gained $199.24 million on Friday to close at $39.82 billion compared to $39.62 billion recorded as of the previous day. The latest increase represents a 0.5per cent increase in the country’s foreign reserve.

The nation’s foreign reserve has gained $3.04 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 $4.45 billion.

The recent increase in the reserve position, which has continued since 25th of August is in line with 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.