By Kayode Tokede
The naira at parallel market traded flat at N465 against the dollar on Wednesday.
The local currency also traded against the pounds at N565, while losing 0.79per cent against Euro to close at N510.
At the Investors & Exporters Foreign Exchange (I &E FX) window, the Naira closed up by 0.1 per cent vs the dollar closing at N386.50.
The FMDQ Exchange said a total of $ 18.71 million was traded on Wednesday at the specialized foreign exchange window for investors and exporters.
Meanwhile, naira traded flat at N381 against the dollar at the interbank market of the Central Bank of Nigeria (CBN)
“Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies,” analysts at Investementone research explained.
Money market rates dipped today as Open buy back and Overnight rates fell from 13.80 per cent and 14.10 per cent to 10.33 per cent and 11.17per cent respectively.
The overnight lending rate contracted by 213 basis points to 10.8per cent, as system liquidity improved.
The NTB secondary market was mixed, as average yield pared by 1bp to 1.9 per cent. Across the curve, yield contracted at the short (-2 basis points) end, following interest in the 78DTM (-7bps) instrument; yield was flat at the mid and long segments. Elsewhere, average yield expanded by seven basis points to 5.7 per cent at the OMO secondary market.
Trading in the Treasury bond secondary market was bullish, as average yield contracted by four basis points to 7.7 per cent.
Across the curve, yield contracted at the short (-6bps), mid (-1 basis point) and long (-6 basis points) segments, as investors demanded the JUL-2021 (-24 basis points), JUL-2030 (-six basis points) and JUL-2034 (-18 basis points) bonds, respectively.
