• Tuesday, July 23, 2024
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BusinessDay

Naira appreciates across markets as trading closes for holidays

Naira currently undervalued – Cardoso

Naira on Friday appreciated against the dollar across foreign exchange market segments as trading closed for Easter holidays.

At the parallel market, also known as black market, naira gained 0.26 percent as one dollar was sold for N740 on Friday compared to N742 on Thursday at the black market.

The local currency also appreciated at the Investors and Exporters (I&E) forex window, gaining 0.11 percent as the dollar was quoted at N463.25 as against the last close of N463.75, data from the FMDQ indicated.

Most currency dealers who participated at the foreign exchange market auction on Thursday maintained bids between N460.00, low rate and N466.00 per dollar, high rate.

Read also: Africa has prospect for growth and should attract investment – Citibank CEO

The daily foreign exchange market turnover increased by 83.45 percent to $101.45 million on Thursday from $55.30 million recorded on Wednesday.

At the interbank foreign exchange forward contracts market, the spot exchange rate remained unchanged, closing at N462/$1, according to a report by Cowry Asset Management Limited.

In the oil market this week oil price movement saw a significant rebound of the commodity price to trade at $84.76 per barrel despite the production cut from major oil producers in the midst of confidence returning to the global banks and recessions fears, the report said.

However, on the home front, the Bonny Light crude price reacted positively to factors playing in the oil market as it surged by 7.6 percent or ($5.61) week on week, to close at $86.80 per barrel (04/05) from $79.57 per barrel in the previous week.

“Next week, we expect the naira to trade in a relatively calm band across various market segments barring any market distortion in the face of the Naira scarcity and as the apex bank continues its weekly FX market intervention to defend the value of the naira,” analysts at Cowry Asset said.

At the money market on Thursday, the Overnight (O/N) rate decreased by 0.13 percent to close at 18.88 percent as against the last close of 19.01 percent, and the Open Repo (OPR) rate also decreased by 0.13 percent to close at 18.50 percent compared to 18.63 percent on the previous day, according to a report by FSDH research.

The Nigerian treasury bill (NT-Bills) secondary market closed on a negative note with the average yield across the curve increasing by 10 bps to 8.09 percent from 7.99 percent on the previous day. Average yield across the long-term maturities expanded by 16 bps.

However, the average yields across short-term and medium-term maturities remained unchanged at 4.03 percent and 6.94 percent, respectively. NTB 7-Mar-24 (+98 bps) maturity bill witnessing selling pressure.