Naira depreciates by 1.06% to close at parallel market

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Naira at the parallel market on Monday depreciated by 1.06 per cent to close at N475 against the dollar.

It also lost 1.17per cent and 1.47 per cent against the pounds and euro to close at N607 and N553 respectively.

The naira at the inter-bank market of the Central Bank of Nigeria (CBN) traded flat at N379 against the dollar.

At the Investors & Exporters Foreign Exchange (I& EFX) window, while Naira inched down by 0.02per cent and 0.06 per cent against the pound and euro to print at N502.88 and N451.43 respectively, it closed flat at N386.00 vs the dollar.

According to FMDQ Exchange, a total turnover of $111.38million was traded on the I & E FX window on Monday.

The FMDQ,/ foreign exchange turnover dropped from $186.91/ million/ on last Thursday, to/ $113.95/ million/ on Friday.

The CBN is still struggling to clear the backlog of foreign exchange demand, especially by foreign investors wishing to repatriate their funds.

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

However, the money market rates were mixed today as Open Buy Back rate printed flat at 0.50 per cent, while Overnight rate was up by 37basis points to print at 1.00.

The bond market was somewhat quiet today although yields inched down across some tenures. While we witnessed the yields on the 5yr and 7yr benchmark bonds decline by two basis points and 1bp to close at 2.37 per cent and 3.65 per cent respectively, the 10yr bond inched up by three basis points to print at 4.73 per cent.

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