• Sunday, March 03, 2024
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BusinessDay

Naira loses 2.47% as dollar supply declines at official FX market

Naira strengthens as CBN moves to stabilize economy

The pressure on the foreign exchange (FX) market intensified as Nigeria’s naira weakened against the United States currency following low dollar supply at the official market on Monday.

After trading on the same day, naira depreciated by 2.47 percent as the dollar was quoted at N925.34 on Monday compared to N902.45 quoted on Friday at the Nigerian Autonomous Foreign Exchange Market (NAFEM), data from the FMDQ indicated.

Dollar was quoted as high as N1,311 on the spot, during the intraday trading and N745/$ as the lower bid rate.

The daily FX market turnover, which reflects the volume of dollars supplied in the market, dropped by 49.74 percent to $73.33 million on Monday from $145.89 million recorded on Friday.

At the money market, the Overnight (O/N) rate decreased by 2.25 percent to close at 21.00 percent as against the last close of 23.25 percent, and the Open Repo (OPR) rate decreased by 2.15 percent to close at 19.95 percent compared to 22.10 percent on the previous day.

The Nigerian treasury bills secondary market closed on a flat note on Monday with the average yield across the curve closing flat at 3.28 percent, according to a report by FSDH research.

Average yields across short-term, medium-term, and long-term maturities closed flat at 1.65 percent, 2.83 percent, and 4.53 percent, respectively.

The Debt Management Office (DMO) has released its Federal Government of Nigeria (FGN) Bonds offer circular for January 2024 Primary Market Auction, indicating plans to offer FGN bonds worth N360 billion through the re-opening of 10-year FGN for March 2027 (N90 billion), 10-year FGN April 2029 (N90 billion), 10-year FGN June 2033 (N90 billion), and 15-year FGN June 2038 (N90 billion) tenors.

The bond auction is scheduled to be held on January 29, with settlement on January 31, 2024.