• Tuesday, November 28, 2023
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Naira gains 0.18% at official market after CBN’s shakeup

Push a door and it might open

Naira appreciated against the dollar by 0.18 percent at the Investors and Exporters (I&E), on Tuesday, the first trading day after a shakeup at the Central Bank of Nigeria (CBN).

After trading on Tuesday, the Naira dollar was quoted at N471.67 as against the last close of N472.50 on Friday.

Most currency dealers who participated in the foreign exchange auction on Tuesday maintained bids between N460.00 and N477.00 per dollar.

President Bola Ahmed Tinubu, on Friday, suspended Emefiele, following the ongoing investigation of his office and the planned reforms in the financial sector of the economy.

The local currency on Tuesday gained 0.66 percent against the dollar at the parallel market following low demand as speculators adopt a wait-and-see approach, after the suspension of the governor of the Central Bank of Nigeria.

Read also: Price stability, economic growth top expectations from next CBN governor

“There is no demand for dollars, people are not buying because they are speculating that the dollar will fall following the CBN governor’s suspension,” a trader told BusinessDay.

At the money market, the Nigeria Treasury Bills (NTB) secondary market closed on a flat note on Tuesday with the average yield across the curve remaining unchanged at 6.34 percent, according to a report by FSDH research.

Average yields across short-term and medium-term maturities closed flat at 4.49 percent and 5.30 percent, respectively. However, the average yield across the long-term maturities decreased by 0.01 percent.

NTB for February 8, 2024, March 7,2024, May 9, 2024, and April 11, 2024 maturity bills witnessed mild buying interest with a yield decline of 1 basis point each.

The Overnight (O/N) rate increased by 0.20 percent to close at 12.30 percent on Tuesday as against the last close of 12.10 percent, and the Open Repo (OPR) rate also increased by 0.20 percent to close at 11.90 percent compared to 11.70 percent on the previous day.