Naira depreciates by 0.13% at I & E FX window

By Kayode Tokede

The naira at the Investors & Exporters Foreign Exchange ( I & E FX) window depreciated by 0.13 per cent on Wednesday to close at N395.50 against the dollar.

It inched up by 0.15per cent and 0.04 per cent against the euro and pound sterling to print at N457.26 and N519.47 respectively.

According to FMDQ, a turnover of $ 52.59 million was traded by investors and exporters on Wednesday. Our correspondent had reported that investors and exporters traded a turnover of $71.25 million on Tuesday.

At the parallel market, the Naira closed flat against the euro, pound sterling and dollar at N580, N655 and N480 respectively.

The naira at the Central Bank of Nigeria (CBN) interbank market traded flat at N379 against the dollar on Wednesday.

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

“Money market rates rose today as Open Buy Back and Overnight rates increased by 175basis points and 183basis points to 11.25per cent and 11.50 per cent respectively.

“The bond market traded on a positive note today as yields declined across most maturities. Consequently, we witnessed the yields on the 5yr, 7yr and 10yr benchmark bonds decrease by one basis point, two basis points and 12basis points to close at 6.34 per cent, 8.42 per cent and 8.88 per cent  respectively.”

They added that “In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation.”