Naira stables against dollar across foreign exchange segments

Motolani Oseni

The Naira remained stable against the Dollar across foreign exchange segments, closing at N360.63 at the Investors & Exporters Foreign Exchange Window (I & E FX) on Tuesday before the close for the public holiday.

The specialized foreign exchange the window opened for trading at N360.40 against the dollar, trading high and low at N362.00 and N345.00/ Dollar band respectively.

At the close of Tuesday trading activities, the I& E FX window, recorded an increase in its turnover by six per cent to $176.34 million,

At the Central Bank of Nigeria (CBN)’s interbank foreign exchange market, the local currency, closed at N306.96 as against the dollar while it closed flat at NGN360.00 at the parallel market.

However, the overnight lending rate moderated by 875 basis points to 16.29per cent in the absence of any significant inflows.

Activities in the treasury bills market were mixed, but with bullish tilt, as average yield one basis point to close at 13.08per cent.

Demand for the 35DTM (-4 bps) led to yield contraction at the short (-35 basis points) end of the curve while the mid and the long segment of the curve were respectively flat.

Analysts at Cordros capital said, “Akin to the treasury bills market, trading in the bond market was also mixed, with bullish tilt, as average yield contracted by 1 bps to close at 14.24per cent.

“Sell pressure led to yield widening at the long (+one basis point) ends of the curve, with yields expansion evident on the APR-2036 (+six basis points).

“Conversely, demand for the FEB-2028 (-five basis points) bond led to yield contraction at the mid (-three basis points) segment, while the short end of the curve was flat.”