Naira gains 0.27% to close N410.88/$ at I&E FX window

The Naira at the close of trading activities on Thursday at the Investors & Exporters Foreign Exchange (I & EFX) window, appreciated by 0.38per cent and 0.27 per cent against the pound sterling and dollar closing at N564.04, and N410.88 respectively.

It depreciated marginally by 0.02per cent against the euro to close at N483.55.

At the parallel market, while the naira closed flat against the euro and pound sterling at N605 and N710 respectively, it lost 0.19 per cent against the dollar to close at N522.

According to analysts at investment one research, “Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies.”

Money Market rates fell today as Open Buy Back and Overnight rates decreased by 300basis points and 333basis points respectively to close at 10 per cent each.

The bond market traded on a negative note today, as yields increased across the curve.

The yields on the 5yr, 7yr and 10yr benchmark bonds rise by 19basis points, nine basis points and six basis points to close at 10.62 per cent, 11.40 per cent and 11.67 per cent respectively.

“In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation,” analysts at investment one research added.

Foreign reserve declined further on Tuesday by $31.29 million to close at $33.39 billion compared to $33.43 billion recorded as of Monday, 22rd August 2021. This represents a 0.09per cent decline compared to the previous day.

The latest decline cancelled out the positive movement in the month of August as the month-to-date movement in the external reserves is currently at a $3.34 million deficit, having recording daily declines for 10 consecutive days.

Its year-to-date change shows a $1.97 billion loss compared to $35.37 billion recorded as of 31st December 2021.

While recent reports have suggested that Nigeria’s foreign reserve position could grow as high as $40 billion by the end of September 2021, the recent decline in the external reserve could be attributed to the decline recorded in the global crude oil market in recent weeks.