Naira steadies against dollar, euro, relapses to 488/£1 at parallel market

The Nigerian currency, Naira, remained steadied against the US dollar and euro at the parallel market segment of the foreign exchange market, while relapsed by three points against the pound sterling.

The Naira, had closed at 367 and 436 to the dollar and euro respectively on Tuesday, the same rate they closed at the end of yesterday’s trading activities, but dropped to 488 to a pound sterling against 485 exchanged on Tuesday at the unofficial forex market.

At the official foreign exchange market, the naira maintained the 305.90 per dollar for the third day running, considering Monday and Tuesday’s trading rate of 305.90, even though it was better than 305.95 sold on about a week ago.

But, at NAFEX, the naira, on Wednesday, lost its gaining streak to close at 360.22, against 359.06 traded on Tuesday, however, opened at a better rate of 359.71 against Tuesday, 359.9.

The NAFEX, also, recorded a further dropp in its daily turnover, declaring $102.75 million against $125m recorded a day earlier but lower than $131.84m closed on Monday.

Meanwhile, the Federal Government, through its Debt Management Office (DMO), said that it has concluded plans to auction N135 billion ($442m) in bonds next week.

The debt office plans to sell N35bn of bonds due in 2021; and N50bn each of bonds due in 2027 and in 2037, using a Dutch auction system.
Settlement is expected two days after the sale. The bonds are re-openings of previous issues.

The central bank on Wednesday announced plans to sell N140.9bn worth of Treasury bills at an auction next week.
Nigeria, Africa’s biggest economy, issues sovereign bonds each month to help fund its budget deficit, support the local debt market and maintain a benchmark for companies to follow.

It has a series of debt issues lined up this year, including a N100bn debut domestic Sukuk, which it is marketing to fund road projects and a 20 billion naira “green bond.”
 

Stories by Motolani Oseni