Naira depreciates by 0.83% to N486/$ at parallel market
By Kayode Tokede
Naira at the parallel market on Tuesday closed negative against Dollar, Pound Sterling and Euro losing 0.83per cent, 0.30 per cent and 0.88 per cent to close at N486, N672 and N575 respectively.
The Naira on Monday closed flat against the Pound sterling and Dollar at N670 and N482 respectively.
Our correspondent gathered that Naira at the Investors & Exporters Foreign Exchange (I &EFX) window, while the Naira gained by 0.12per cent and 0.38 per cent against the Euro and Pound Sterling closing at N491.90 and N570.32 respectively, it inched down by 0.08per cent against the Dollar to close at N410.67.
Our correspondent also gathered that Naira at the interbank market of the Central Bank of Nigeria (CBN) traded flat at N379 against the Dollar.
According to analysts at Investment One research, “Going forward, we expect the foreign exchange market to be dictated by heightened dollar demand and CBN foreign exchange policies.”
Money market rates were flat today with Open Buy Back and Overnight rates printing at 12.25 per cent and 12.50per cent respectively.
The bond market was negative on Tuesday with yields closing higher across most maturities.
The yield on the 5yr benchmark bond close flat at 11.93 per cent while yields on the 7yr and 10yr benchmark bonds gained by 27basis points and one basis points to close at 12.38 per cent and 12.18 per cent respectively.
Our correspondent gathered that the country’s foreign reserves closed on Monday at $35.22bllion.
According to the CBN, the country’s foreign reserves closed Friday at $35.25billion.
The foreign exchange buffer increased by 0.08per cent on Thursday to stand at $35.23 billion. This represents the 18th consecutive increase in Nigeria’s foreign reserves position having gained $804.77 million since 18th March 2021, about a month ago.
Nigeria’s foreign reserves received a consistent boost in recent times, owing to the growth in the price of crude oil and its policy to pay Nigerians for any unit of dollar received from the diaspora.
Meanwhile, the country’s reserve position is set to receive a further boost as the Federal Government announced its plans to issue 500 million Eurobonds for 2021.
