Naira gains 2.42% as market turnover rises

Naira on Tuesday steadied at N870 at the parallel market, while it gained 2.42 percent at the official market on Monday following an increase in foreign exchange (FX) market turnover.

The daily FX market turnover, which reflects the volume of transactions at the Investors’ and Exporters’ (I&E) forex window, rose by 24.05 percent to $67.21 million on Monday from $54.18 million recorded on Friday.

The dollar supply that pushed up the market turnover came from the willing buyers and willing sellers, which include exporters, banks and the Central Bank of Nigeria (CBN).

Consequently, naira appreciated as the dollar was quoted at N756.94 on Monday as against N775.76 quoted on Friday at the I&E window, Nigeria’s official FX market, data obtained from the FMDQ indicated.

Willing buyers and sellers maintained bids as high as N830 per dollar, which was weaker than N799.50/$1, on Friday but stronger than N869 per dollar on Thursday.

The market auction also recorded lower bids of N651.00 per dollar on Monday, weaker than N465.00 bid on Friday but stronger than N730.00, bid maintained on Thursday and Wednesday at the I&E window.

At the parallel market, also known as black market, naira appreciated by 0.34 as the dollar traded at N870 on Monday and Tuesday compared to N867 on Friday.

At the money market, the Nigerian treasury bills secondary market closed on a mildly negative note on Monday with the average yield across the curve increasing by 2 bps to 6.69 percent from 6.67 percent on the previous day, according to a report by FSDH research.

The report noted that average yield across the long-term maturities expanded by 4 bps. However, the average yields across short-term and medium-term maturities closed flat at 4.02 percent and 5.42 percent, respectively. NTB June 6, 2024 maturity bill witnessed selling pressure, with a yield increase of 23 bps.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.