• Friday, March 29, 2024
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Naira firms by 1.09% as liquidity improves at investors window

Naira

Nigeria’s currency on Thursday gained 1.09 percent against the dollar following improved liquidity at the Investors and Exporters (I&E) forex window.

At the close of trading on Thursday, naira closed at N406.50k, stronger than N411.00k closed on Wednesday, data from the FMDQ indicated.

Currency traders who participated in the trading on Thursday maintained bids at between N389.25k and N427.45k/$.

The daily foreign exchange market turnover increased by 102.08 percent to $66.99 million on Thursday from $33.15 million recorded on Wednesday.

Naira steadied at N480 per dollar at the parallel market and Bureau De Change (BDC) segment of the foreign exchange market on Thursday.

At the money market, the Nigeria treasury bills secondary market closed on a flat note on Thursday, with the average yield across the curve remaining unchanged at 1.48 percent, a report by FSDH research noted.

Average yields across short-term, medium-term, and long-term maturities closed at 0.57 percent, 1.45 percent, and 2.01 percent, respectively.

In the Open Market Operation (OMO) bills market, the average yield across the curve increased by 2 bps to close at 6.14 percent as against the last close of 6.12 percent. Selling pressure was seen across long-term maturities with average yields expanding by 3 bps, while the average yields across short-term and medium-term maturities closed flat at 3.26 percent and 5.07 percent, respectively. Selling pressure was only witnessed in the OMO 12-Oct-21 (+32 bps) maturity bill, while yields on 19 bills remained unchanged.

The Federal Government of Nigeria (FGN) bonds secondary market closed on a flat note on Thursday, as the average bond yield across the curve closed flat at 5.18 percent. Average yields across short tenor, medium tenor, and long tenor of the curve remained unchanged.

Activities in the secondary bond market are likely to remain subdued in the near term as the key market events (bond coupon payments, inflation data, and the MPC meeting) are expected much later in the month.