The naira on Wednesday depreciated in value by N0.98k or 0.50 percent against the dollar following increased demand at the inter-bank foreign exchange market.
After trading on Wednesday, naira closed at N198.53k/$ compared with N197.55k/$ traded the previous day at the interbank market, data from FMDQ revealed.
However, the local currency remained stable at the Bureau de Change (BDC) segment of the foreign exchange market and the parallel market closing at N218/$ and N220/$, respectively.
Meanwhile, the Central Bank of Nigeria (CBN) on Wednesday auctioned N172.85 billion Treasury bill. Consequently, demand was sustained for shorter term instruments, with average yield at the secondary market declining by 0.14 percent, riding on the 0.19 percent average yield decline for the 1 Month, 2 Months, 3 Months, 6 Months and 9 Months instruments. Thus, average offer yield pegged by 14.94 percent for the day.
Analysts at Meristem Securities Limited said tempered market liquidity continued to determine rate movements at the interbank with two tenors apiece declining and appreciating in rates. Average rate declined by 0.03 percent to close at 14.94 percent.
Similarly, the Open Buy-Back (OBB) and Overnight (OVN) rates advanced by 0.83 percent and 0.25 percent to close at 9.83 percent and 10.17 percent, accordingly.
Investors’ demand waned towards the instruments at the longer end of the yield curve at the secondary market, as average offer yields for the Benchmark and Off-the-run bonds declined and advanced by 0.01 percent accordingly. However, the Meri-Bond Index appreciated in value by 0.02 percent, the analysts said.
