Naira trades flat at interbank market

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By Kayode Tokede

Naira on Monday traded flat at N379.00 against Dollar at the interbank market of the Central Bank of Nigeria (CBN).

At the Investors & Exporters Foreign Exchange Window (I &EFX), while the Naira closed down by 0.04per cent, 0.82 per cent and 1.14 per cent against the Dollar, Euro and Pound Sterling to close at N386.00, N455.87 and N504.31 respectively.

FMDQ Exchange stated that a total of $102.35 million was traded by Investors and Exporters on Monday.

At the parallel market, while the Naira depreciated by 0.65 per cent and 0.20 per cent to close at N460 and N538 against the Dollar and Euro respectively, it gained 0.84per cent against the Pound Sterling to close at N590.

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

The overnight lending rate contracted by 138 basis points to 3.54per cent, in the absence of any significant outflow from the system.

Trading in the NTB secondary market was bullish, as average yield declined by six basis points to 1.4per cent.

Across the curve, average yield contracted at the short (-five basis points), mid (-nine basis points) and long (-five basis points) segments, following buying interests in the 94DTM (-seven basis points), 136DTM (-20 basis points) and 339DTM (-16 basis points) instruments, respectively.

In the same vein, average yield contracted by 9bps to 1.3 per cent at the OMO secondary market.

At the Treasury bond secondary market, trading was bullish, as average yield contracted by 11basis points to six per cent

Across the curve, average yield declined at the mid (-47 basis points) and long (- two basis points) segments, due to demand for the APR-2029 (-113 basis points and APR-2037 (-eight basis points) bonds, respectively.

Conversely, average yield expanded at the short (+four basis points) end, following selloff of the JAN-2022 (+19 basis points) bond.