Nigeria’s currency on Thursday closed flat against the dollar at all market segments of the foreign exchange market.
Naira/dollar exchange rate steadied at N411.20k at the official market known as the Investors and Exporters (I&E) forex window or the Nigerian Autonomous Foreign Exchange Fixing (NAFEX).
Currency traders who participated at the trading session on Thursday maintained bids at between N400.00k and N412.50k per dollar.
The foreign exchange market daily turnover declined by 42.19 percent to $123.69 million on Thursday from $213.99 million recorded on Wednesday, data from the FMDQ indicated.
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At the Bureau De Change (BDC) and the parallel market, naira closed flat at N500 and N505 per dollar respectively.
At the money market, the Overnight (O/N) rate decreased by 7.25 percent to close at 7.25 percent on Thursday as against the last close of 14.50 percent on Wednesday, and the Open Buy Back (OBB) rate decreased by 7.00 percent to close at 7.00 percent compared to 14.00 percent on the previous day.
“As the system liquidity improved due to inflows from NT-bills and FGN bonds maturities worth N711.18 billion, we expect the money market rates to remain subdued, barring any significant funding pressures on market participants,” analysts at FSDH Research said.
The Nigerian Treasury Bills secondary market closed on a negative note with average yield across the curve increasing by 7 bps to close at 7.10 percent from 7.03 percent on the previous day. Average yield across the short-term maturities expanded by 31 bps, while the average yield across the long-term maturities declined by 1 basis point. However, the average yield across the medium-term maturities closed flat at 5.93 percent. Yields on 6 bills advanced with the 30-Sep-21 maturity bill recording the highest yield increase of 33 bps, while yields on 14 bills remained unchanged.
In the Open Market Operation (OMO) bills market, the average yield across the curve remained unchanged at 9.53 percent on Thursday. Average yields across short-term, medium-term, and long-term maturities closed flat at 8.77 percent, 9.48 percent, and 10.17 percent, respectively.
