Nigeria’s currency on Monday weakened by N1.00k as the dollar was trading at N461 as against N460 on Friday on the black market.
The depreciation in the value of the naira was due to a little increase in the demand for the greenback by the end users.
Nigeria’s foreign exchange reserves declined by $47.18 million week-on-week to $35.67 billion as FX outflows outpaced inflows.
At the Investors and Exporters (I&E) forex window, Naira weakened further by 0.04 percent as the dollar was quoted at N386.00 as against the last close of N385.83. Analysts at FSDH research said most participants maintained bids between N383.00 and N392.79 per dollar.
The local currency remained stable at N459 at the Bureau De Change (BDC) segment of the foreign exchange market.
BDCs are expected to receive dollar allocation from the Central Bank of Nigeria (CBN) on Tuesday after funding their account on Monday.
A report by the FSDH research noted that Nigerian Treasury Bills secondary market closed on a positive note on Monday with average yield across the curve declining by 34 bps to close at 0.78 percent from 1.12 percent on the previous day. Average yields across medium-term and long-term maturities compressed by 2 bps and 66 bps, respectively, due to maximum buying interest witnessed in the NTB 26-Aug-21 (-120 bps), NTB 29-Jul-21 (-101 bps), and NTB 15-Jul-21 (-92 bps) maturity bills. However, the average yield across short-term maturities remained unchanged at 0.64 percent.
The Overnight (O/N) rate declined by 0.13 percent to close at 1.88 percent on Monday from 2.01 percent on the previous day, and the Open Buy Back (OBB) rate also declined by 0.17 percent to close at 1.00 percent as against the last close of 1.17 percent.
“We expect the money market rates to remain subdued as inflows from Open Market Operation (OMO) bills maturities worth N328.70 billion and FGN bond coupon payments worth N32.67 billion are expected to hit the system later in the week,” the analysts said.
