Naira depreciates against dollar by 0.02% at I & E FX window
By Kayode Tokede
Naira at the Investors & Exporters Foreign Exchange (I & EFX) depreciated by 0.02 per cent close at N413.18 on Wednesday.
The specialized foreign exchange window on Tuesday had appreciated by 0.10 per cent to close at N413.28 against the dollar.
The local currency closed down by 0.17per cent and 0.07per cent on Wednesday against the euro and pound sterling at N484.33 and N563.54 respectively.
However, on Monday the exchange rate between the naira and the dollar had closed at N413.68, at the official I & E FX window on Monday compared to N412.88/$1 recorded on Friday.
Meanwhile, foreign exchange turnover at the I&E window on Tuesday was $200.65million from $229.72million it traded on Tuesday.
Analysts at Investment One research noted that the Foreign Exchange (FX) market is to be dictated by heightened dollar demand and Central Bank of Nigeria (CBN) FX policies.
Money market rates increased today as Open Buy Back and Overnight rates rose by 150bps and 175bps to close at 17.00per cent and 18.00per cent respectively.
The bond market traded on a somewhat quiet note today, as yields closed flat on most maturities. The yield on the 5yr bond close down by 26bps at 10.45 per cent, while the yields on the 7yr and 10yr bonds closed flat at 11.60 per cent and 11.94 per cent respectively.
At the bond auction today the DMO raised c.N277billion across the 10yr, 15yr and 30yr bonds. The stop rates on the 10yr and 15yr bonds remained flat at 11.60 per cent and 12.75per cent respectively, while that of the 30yr bond was up by 20bps to 13 per cent.
According to CBN, the country’s foreign reserve gained $280.44 million on Monday to close at $35.74 billion compared to $35.46 billion recorded as of the previous day. The latest increase represents a 0.79per cent boost in the country’s foreign reserve and the highest gain recorded since the beginning of the growth in August 2021.
The reserve has now gained $1.72 billion in the month of September 2021, while the recent gain has cancelled out the year-to-date loss as it currently stands at a gain of $361.74 million.
The recent increase in the reserve position, which has continued for 19 consecutive days is in line with recent reports which had suggested that Nigeria’s foreign reserve position could grow as high as $40 billion by the end of September 2021.
While the foreign reserve continues to grow, the recent Eurobond being opened by the federal government could further boost the reserve level.
