The Naira on Wednesday firmed against the dollar by 0.21 percent at the official market following increased liquidity.
Read Also: Naira to further weaken by 5.83% year end
The foreign exchange market daily turnover rose by 122.75 percent to $131.16 million on Wednesday from $58.88 million recorded on Tuesday.
Consequently, after trading on Wednesday Naira/dollar exchange rate closed at N410.75k compared with N411.50k closed on Tuesday at the Investors and Exporters (I&E) forex window, data from the FMDQ indicated.
Currency traders who participated in the trading on Wednesday maintained bids at between N360.00k and N426.90k/$, according to the data.
The local currency steadied at N482 per dollar and N484/$ at the Bureau De Change (BDC) segment and parallel market respectively.
At the money market, the Nigeria treasury bills secondary market closed on a negative note on Wednesday, with the average yield across the curve increasing by 9 bps to close at 5.50 percent from 5.41 percent on the previous day, a report by FSDH research noted.
Average yields across short-term and medium-term maturities expanded by 9 bps and 21 bps, respectively, while the average yield across long-term maturities remained unchanged at 7.36 percent. Yields on 7 bills advanced with the 26-Aug-21 maturity bill recording the highest yield increase of 46 bps, while yields on 13 bills remained unchanged.
The Overnight (O/N) rate increased by 1.75 percent to close at 15.00 percent on Wednesday as against the last close of 13.25 percent on Tuesday, and the Open Buy Back (OBB) rate also increased by 1.75 percent to close at 14.50 percent from 12.75 percent on the previous day.
In the Open Market Operation (OMO) bills market, the average yield across the curve increased by 10 bps to close at 9.24 percent on Wednesday as against the last close of 9.14 percent on Tuesday. Selling pressure was seen across medium-term and long-term maturities with average yields rising by 17 bps and 9 bps, respectively.
However, the average yield across short-term maturities remained unchanged at 7.69 percent. Yields on 8 bills advanced with the 16-Nov-21 maturity bill recording the highest yield increase of 64 bps, while yields on 17 bills remained unchanged.
The Debt Management Office (DMO) conducted its scheduled FGN bond auction to reopen the 10-year, 15-year, and 30-year instruments. A total of N150 billion was offered across 10-year (N50 billion), 15-year (N50 billion), and 30-year (N50 billion) tenors. The bond settlement will take place on May 21, 2021.
