Nigeria’s currency on Wednesday appreciated by 0.26 percent stronger than the dollar at the Investors and Exporters (I&E) forex window, despite low liquidity.
The daily foreign exchange market turnover increased marginally by 4.98 percent to $34.76 million on Wednesday from $33.11 recorded on Tuesday, data from the FMDQ revealed.
The naira/dollar exchange rate closed at N408.75k on Wednesday as against N409.80k closed on Tuesday at the I&E window. Currency traders who participated in the trading on Wednesday maintained bids at between N394.00k and N414.00k/$.
At the black market and Bureau De Change (BDC) segment of the foreign exchange market, naira remained unchanged at N485 and N486 per dollar, respectively.
At the money market, a report by the FSDH research noted that the Nigerian Treasury Bills secondary market closed on a negative note on Wednesday with average yield across the curve increasing by 36 bps to close at 3.90 percent from 3.54 percent on the previous day.
Average yield across the long-term maturities expanded by 80 bps. However, the average yields across short-term and medium-term maturities closed flat at 2.06 percent and 3.29 percent, respectively. Yields on six bills advanced with the 24-Feb-22 maturity bill recording the highest yield increase of 249 bps, while yields on 11 bills remained unchanged.
The Overnight (O/N) rate increased by 2.00 percent to close at 14.00 percent on Wednesday as against the last close of 12.00 percent on Tuesday, and the Open Buy Back (OBB) rate also increased by 2.00 percent to close at 13.50 percent from 11.50 percent on the previous day. Money market rates are likely to remain subdued later in the week due to low funding pressures and expected FAAC payments.
In the Open Market Operation (OMO) bills market, the average yield across the curve increased by 4 bps to close at 6.59 percent on Wednesday as against the last close of 6.55 percent. Selling pressure was seen across short-term maturities with average yield expanding by 18 bps, while the average yield across long-term maturities declined by 1 basis point.
However, the average yield across medium-term maturities closed flat at 5.99 percent. Yields on 6 bills advanced with the 11-May-21 maturity bill registering the highest yield increase of 46 bps, while yields on 18 bills remained unchanged.
