The daily foreign exchange turnover at the Investors and Exporters (I&E) declined by 63.73 per cent to $37.04 million on Friday from $102.13 million recorded on Thursday.
The decline was a result of the persistent liquidity squeeze in the market. In the I&E FX market, trade volumes remained relatively stable, although trading is affected by tightened liquidity in recent times, analysts at FSDH research said.
Naira weakened further by 0.13 per cent as the dollar was quoted at N388.50 compared to N388.00 on the previous day. Most participants maintained bids between N380.00 and N390.00 per dollar.
The foreign exchange market opened with an indicative rate of N388.07k on Friday morning, which represents a marginal appreciation of N0.11k when compared with N387.96k opened on Thursday, data from FMDQ showed.
At the black market and retail Bureau, Naira lost N1.00k each as the dollar was sold at N469 and N470 respectively on Thursday compared to N468 and N469 traded on the previous day.
At the money market, the Nigerian Treasury Bills (NT-Bills) market closed on a negative note on Friday, with average yield across the curve increasing by 9 bps to close at 1.92 per cent.
In the OMO bills market, average yield across the curve declined by 10 bps to close at 5.60 percent, a report by FSDH research stated.
The Overnight (O/N) rate increased by 18.33 per cent to close at 21.75 per cent. The Open Buy Back (OBB) rate also increased by 17.67 per cent to close at 20.33 per cent.
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The FGN bond market closed on a negative note on Friday, as the average bond yield across the curve cleared higher by 20 bps to close at 4.35 per cent.
On July 16, the NSE listed Series 1 Bond worth N11.50 billion of Axxela Funding 1 Plc issued under its N50.00 billion Bond Programme. The bonds were issued in the domestic capital market through a special purpose vehicle, named as Axxela Funding 1 Plc. The offer had opened on March 27 and closed on May 11. The Seven Year Fixed Rate Bond has a coupon rate of 14.30 per cent, which will be paid on a semi-annual basis.
