Naira gains at parallel, interbank market after Easter holiday

Naira yesterday firmed against the US dollar at both interbank and parallel markets gaining N0.15k and N1.00k after the Easter holidays.

Dealers attributed the naira appreciation to low demand for the greenback as there was no supply from the Central Bank of Nigeria (CBN) and the autonomous source.

Consequently naira yesterday closed at N162.17/$ compared to N162.32/$ traded at inter-bank market on Thursday last week. At the parallel market, naira closed at N170/$ as against N171/$ last week.

The CBN on Wednesday last week offered a total of $400 million but sold a total of $250.8 million to 20 deposit money banks at the rate of N155.73/$ at its bi-weekly Retail Dutch Auction System (RDAS).

Analysts had said naira would strengthen this week on the back of likely foreign portfolio investments in local fixed income securities such as treasury bills and bonds with the possibility of increasing dollar supply.

Some tenor of the Nigeria Inter-Bank Offered Rates (NIBOR) at the money market yesterday increased while others remained stable.

Consequently, call tenor rose to 10.91 percent from 10.87 percent on Thursday last week. Similarly, 7 days, 30 days and 60 days tenors climbed from 11.20, 11.45, and 11.79 percent last week Thursday to 11.25, 11.50 and 11.83 percent respectively. On the other hand, 90 days, 180 days and 365 days all remained stable at 12.12, 12.41, and 12.70 percent respectively.

Inter-bank rates are expected to fall this week following Federation Account Allocation Committee (FAAC) disbursements of N641.38 billion, which are expected to be fully credited during the week and maturing bills worth

N190.62 billion, viz: 91-day bills worth N34.89 billion; 142-day bills worth N20.00 billion; 153-day bills worth N20.00 billion; 182-day bills worth N30 billion; and 364-day bills worth N85.73 billion.

HOPE MOSES-ASHIKE