Naira at I & E FX window rose by 0.31% to N410.38/$

By Kayode Tokede

Naira at the Investors & Exporters Foreign Exchange (I& E FX) window on Monday gained by 0.31per cent and 0.58per cent against the Dollar and Pound Sterling closing at N411.67 and N560.79 respectively.

The local currency inched down by 0.02per cent printing at N483.90.

According to FMDQ Exchange, a foreign exchange turnover of $168.19million was traded by Investors and Exporters on Monday.

At the parallel market, the Naira appreciated by 0.20per cent, 0.67per cent and 0.42per cent against the Dollar, Euro and Pound Sterling to close at N505, N592 and N705 respectively.

Analysts at Investment One research said, “Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.”

Meanwhile, the naira appreciated by 0.3per cent to N410.38/USD at the I&E FX window but depreciated by 0.2per cent to N506.00 against the Dollar in the parallel market.

At the I&E FX, total turnover  decreased by 83.4per cent Week-Till-Date WTD to $90.13 million, with trades consummated within the N411.80 – 423.90/Dollar band.

According to analysts at Cordros securities projected this week that, “We expect improved liquidity in the I&E FX window over the medium term, given our expectation of (1) increased oil inflows in line with the rise in crude oil prices, and (2) inflows from FCY borrowings.

“Accordingly, we expect the naira to remain relatively range-bound (N410.00/Dollar – N415.00/Dollar) at the I & E FX.”

Money market rates increased today as Open Buy Back and Overnight rates rose by 650basis points and 675basis points to close at 11per cent and 11.50per cent respectively.

The bond market traded on a positive note today as yields decreased across most maturities.

The yields on the 5-year and 7-year benchmark bonds close flat at 12.02per cent and 12.35per cent respectively, the yield on the 10yr bond was down by four basis points to 12.61per cent.