Naira depreciates by 0.63% to N401/$

By Kayode Tokede

Naira at the Investors & Exporters Foreign exchange ( I & E FX) market on Tuesday depreciated by 0.63 per cent to close at N401 against the dollar.

Our correspondent gathered that naira at the I & E FX market had closed for trading at N398.42 against the dollar on Monday.

According to the FMDQ, a total of $ 49.07million was traded at the special window for investors and exporters on Tuesday.

However, trading at the parallel market remained flat at N480.00 against the dollar and also at N379 against the dollar at the interbank market of the Central Bank of Nigeria (CBN).

The overnight lending rate declined by 550 basis points to 8.8per cent, following inflows into the system from Open Market Operation (OMO) maturities (N213.87 billion).

The NTB secondary market stayed mixed, as average yield remained flat at one per cent. Elsewhere, average yield at the OMO segment expanded by 94 basis points to 6.4per cent.

The Treasury bonds secondary market was bearish, as average yield expanded by 19 basis points to 8.4per cent. Across the curve, average yield expanded at the short (+17 basis points), mid (+45 basis points) and long (+6 basis points) segments, due to sell-offs of the MAR-2025 (+104 basis points), FEB-2028 (+164 basis points) and MAR-2036 (+66 basis points) bonds, respectively.