Naira at parallel market closes at N530/$
By Kayode Tokede
Naia at the parallel market depreciated by 0.38 per cent to close at N530 against the dollar on Thursday.
The local currency also depreciated by 0.42per cent and 0.65per cent against the pound and euro to close at N720 and N620 respectively.
Also, the naira hit a new record low, depreciating against the dollar at the parallel market, as it closed at N528 against the dollar on Wednesday, representing a N2 drop when compared to N526 against the dollar recorded on the Tuesday.
However, at the Investors & Exporters Foreign Exchange (I & EFX) window, the Naira closed down by 0.04per cent, 0.14 per cent and 0.47 per cent against the dollar, euro and pound closing at N411.67, N488.12 and N569.03 respectively.
Money Market rates fell as Open Buy Back and Overnight rates decreased by 17basis points each to close at 4.33per cent and 4.83per cent respectively.
The bond market traded on a somewhat positive note, as yields decreased on some maturities.
The yield on the 5-year bond close flat at 10.57per cent, while the yields on the 7-year and 10-year bonds decreased by 15basis and nine basis points to close at 11.25per cent and 11.55per cent respectively.
In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation.
The Central Bank of Nigeria (CBN) said the nation’s foreign reserve rose by $85 million as it recorded its fifth increase in over 2 -week to close at $34.018 billion on Tuesday, compared to $33.933 billion recorded as of the previous day. The latest increase represents a 0.25per cent boost in the country’s foreign reserve.
In the same vein, the reserve level has also gained $615 million month-to-date compared to $33.403 billion recorded as of the beginning of the month.
However, its year-to-date change shows a $1.535 billion loss compared to $35.37 billion recorded as of 31st December 2021.
While recent reports have suggested that Nigeria’s foreign reserve position could grow as high as $40 billion by the end of September 2021, the recent decline in the external reserve could be attributed to the decline recorded in the global crude oil market.
