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Naira loses 3.32% in official market as dollar liquidity drops

Naira gains for second straight day at official FX market

Naira on Thursday fell to N762.71 per dollar, losing 3.32 percent value against the dollar as liquidity dropped at the official foreign exchange (FX) market.

The volume of transactions at the Investors’ and Exporters’ (I&E) forex window dropped by 49.58 percent to $85.79 million on Thursday from $170.15 million recorded on Wednesday.

Read also: Naira gains at official market on increased dollar supply

After trading on Thursday, the dollar was quoted at $762.71/$1 as against N738.18 quoted on Wednesday at the official FX market data from the FMDQ indicated.

FX dealers maintained bids as high as N799.90/$1 on Thursday, stronger than N800/$1 bid on Wednesday. At the lower end they bid at N720/$1, lower than N701/$1 recorded on Wednesday and Tuesday.

Read also: Naira back in freefall as $3bn Afrexim bank loan stalls

At the parallel market, also known as black market on Thursday, naira steadies at between N920and N925 at the various street trading areas across the country.

The money market Overnight (O/N) rate decreased by 0.40 percent to close at 2.60 percent compared to 3.00 percent on the previous day, and the Open Repo (OPR) rate decreased by 0.68 percent to close at 1.90 percent compared to 2.58 percent on the previous day, according to a report by FSDH Research.

Nigeria treasury bills (NT-Bills) secondary market closed on a flat note on Thursday with the average yield across the curve closing flat at 6.72 percent. Average yields across short-term, medium-term, and long-term maturities remained unchanged at 3.12 percent, 5.82 percent, and 9.43 percent, respectively.

Read also: Naira loses 0.42% as FX market records marginal turnover

The report noted that FGN bonds secondary market closed on a mildly positive note on Thursday, as the average bond yield across the curve cleared lower by 2 bps to close at 14.20 percent from 14.22 percent on the previous day.

Average yield across the short tenor of the curve declined by 19 bps, while the average yield across the medium tenor of the curve expanded by 4 bps. However, the average yield across the long tenor of the curve remained unchanged.

Read also: Naira loses 2.23% of value in August as external reserves decline

The March 23, 2025 maturity bond was the best performer with a decrease in the yield of 38 bps, while the April 27, 2032 maturity bond was the worst performer with an increase in the yield of 14 bps.