• Sunday, May 26, 2024
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Dollar demand outweighs supply as Naira weakens by 0.13%


Demand for dollars by the end-users outweighed the supply on Tuesday leading to Naira depreciating by 0.13 percent at the Investors and Exporters (I&E) forex window.

After trading on Tuesday, the dollar closed at N386. 50k as against N386.00k quoted on Monday, data from the FMDQ revealed.

Most participants maintained bids between N362.00 and N389.00 per dollar analysts at FSDH research said.

The foreign exchange daily turnover declined by 88.31 percent to $14.37 million on Tuesday from $122.89 million recorded on Monday at the I&E window.

Read Also: https://businessday.ng/markets/currency-watch/article/volume-of-dollar-sales-at-ie-forex-window-falls-to-937-27m/

Earlier in the morning, the market opened with an indicative rate of N387. 10k, which represents an N0.24k depreciation when compared with N386.86k opened with on the previous day at the I&E window.

Naira was stable on the black market as the dollar traded at N458 on Tuesday, the same rate since last week.

The local currency was also stable at the retail bureau and the official market where the dollar was quoted at N460 and N361.

At the money market, NT-bills market closed on a positive note on Tuesday, with average yield across the curve declining by 36 bps to close at 2.15 percent.

In the Open Market Operation (OMO) bills market, average yield across the curve declined by 32 bps to close at 5.07 percent according to FSDH report.

The FGN bond market closed on a positive note today, as the average bond yield across the curve cleared lower by 18 bps to close at 5.07 percent.

Nova Merchant Bank Limited is planning to raise up to N10.0 billion by issuing seven-year Fixed Rate Subordinated Unsecured Bonds under its SEC-approved N50 billion Debt Issuance Programme. The issue will be conducted via a funding vehicle – NOVAMBL Investments SPV PLC. The bonds are callable after five years.