Naira at parallel market closes flat at N520/$

By Kayode Tokede

Naira at the parallel market on Monday closed flat at N520 against the Dollar but appreciated by 0.33 per cent against the euro to close at N604.

The local currency also closed against the Pound sterling at N520.

Meanwhile, the local currency at the Investors & Exporters Foreign Exchange (I & EFX) window, the Naira closed down by 0.89per cent, 0.45 per cent and 0.04 per cent against the Pound sterling, Euro and Dollar closing at N564.85, N483.12 and N411.83 respectively.

At the parallel market, the Naira closed flat against the Dollar and Pound sterling at N520 and N708 respectively, while it appreciated by 0.33per cent against the Euro to close at N604.

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

Money Market rates fell today as Open Buy Back and Overnight rates decreased by 583basis points and 633basis points to close at 17.50per cent each.

The bond market traded on a positive note today, as yields declined across the curve.

The yields on the 7yr and 10yr benchmark bonds fell by seven basis points and 21 basis points to close at 11.48per cent and 11.71per cent respectively, while the yield on the 5yr bond closed flat at 11.10per cent.

“In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation,” analysts at Investment One research added.