Naira depreciates at parallel market to N462/$

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By Kayode Tokede

Naira at the parallel market on Wednesday depreciated by 0.22 per cent to N462 against the Dollar as scarcity continued to hit the foreign exchange market.

Also, the Naira depreciated by 0.37 per cent, and 1.35per cent to close at N540 and N600 against the Euro, Dollar and Pound respectively.

However, the Naira at the Investors & Exporters Foreign Exchange ( I & E FX) window closed down by 0.99 per cent and 0.38 per cent against the Pound and Euro to close at N497.45 and N448.84 respectively, it gained 0.04 per cent against the Dollar to close at N385.83.

According to the FMDQ Exchange, a total of $29.53 million was traded by Investors & exporters on Wednesday.

Nigerian NewsDirect gathered that Naira at the interbank market of the Central Bank of Nigeria (CBN) traded flat at N379 against the Dollar.

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

However, Money market rates decline today as Open Buy Back and Overnight rates decreased by 58 basis points and 104basis points to close at 1.75per cent and 2.63 per cent respectively.

The bond market was somewhat quiet today although yields declined on some short and medium tenures. While the yield on the 10yr benchmark bond declined by five basis point to 6.31 per cent, the yield on the 5yr benchmark bond rose by 8bps to close at  four per cent.

Conversely, the yield on the 7yr benchmark bond was flat remained 5.79per cent.