• Friday, May 24, 2024
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BusinessDay

Naira stable at N461 as FX turnover rises by 122.02%

Naira

Nigeria’s currency maintained stability as the dollar traded at N461 and N462 on the black market and Bureau De Change (BDC) segment on Tuesday.

The foreign exchange daily turnover at the Investors and Exporters (I&E) forex window rose by 122.02 percent to $231.35 million on Tuesday from $104.20 million recorded on Monday, data from FMDQ indicated.

At the I&E window, Naira weakened by 0.10 percent as the dollar was quoted at N386.00 as against the last close of N385.63. Analysts at FSDH research said most participants maintained bids between N383.00 and N393.49 per dollar.

FSDH report showed that in October 2020, Nigeria’s FX reserves fell by $48.38 million to $35.69 billion from $35.74 billion at the end of September 2020. The CBN had stated that FX reserves are expected to be in the range of $29.9 billion and $34.3 billion by December 2020 as outflows are likely to outpace inflows.

At the money market, the Nigeria treasury bills secondary market closed on a flat note on Tuesday with average yield across the curve remaining unchanged at 0.52 percent. Average yields across short-term, medium-term, and long-term maturities closed at 0.37 percent, 0.85 percent, and 0.46 percent, respectively.

The Overnight (O/N) rate declined by 0.17 percent to close at 0.83 percent from 1.00 percent on the previous day, and the Open Buy Back (OBB) rate also declined by 0.25 percent to close at 0.50 percent as against the last close of 0.75 percent.

“We expect the money market rates to remain subdued as inflows from Opem Market Operations (OMO) bills maturities worth N224.45 billion would hit the system later in the week,” the analysts said.

In the OMO bills market, the average yield across the curve declined by 7 bps to close at 0.42 percent as against the last close of 0.49 percent. Buying interest was witnessed across short-term maturities with the average yield falling by 14 bps. However, average yields across medium-term and long-term maturities remained unchanged at 0.49 percent and 0.63 percent, respectively. Yields on 9 bills declined with the 24-Nov-20 maturity bill recording the highest yield decline of 29 bps, while yields on 16 bills remained unchanged.