Naira on Tuesday appreciated against the dollar at the official market, gaining 0.67 percent as the foreign exchange market closed for a two-day holiday.
After trading on Tuesday, the dollar was quoted at the rate of N763 as against N768.17 quoted on Monday at the Investors and Exporters (I&E) forex window, data from the FMDQ indicated.
Most currency dealers who participated in the foreign exchange market auction on Tuesday maintained bids as high as N841 per dollar and as low as N467/$.
The daily foreign exchange market turnover increased by 23.89 percent to $245.65 million on Tuesday compared to $198.13 million recorded on Monday.
At the parallel market, also known as the black market, there was no rate on Wednesday as the operators closed business for the Salah celebration.
But on Tuesday, the naira gained 0.13 percent (N1/$1) against the dollar at the parallel segment of the foreign exchange market as demand moderated.
At the end of trading on Tuesday, the dollar was quoted at the rate of N772 as against N773 quoted on Monday at the unofficial market.
On June 14, 2023, the CBN abolished segments of the official FX market to the I&E Window, where the “Willing buyer and Willing seller” was re-introduced. Based on this adjustment, the official rate rose from N463.38/$ to N763, the current rate.
At the money market, the Nigerian treasury bills (NT-Bills) secondary market closed on a flat note on Tuesday with the average yield across the curve remaining unchanged at 6.22 percent.
A report from FSDH research noted that average yields across short-term, medium-term, and long-term maturities closed flat at 6.09 percent, 5.45 percent, and 6.72 percent, respectively.
As of June 27, the Overnight (O/N) rate decreased by 0.66 percent to close at 2.14 percent as against the previous close of 2.80 percent, and the Open Repo (OPR) rate decreased by 0.64 percent to close at 1.36 percent compared to 2.00 percent on the previous day.
FMDQ Exchange approved the quotation of FBNQuest Merchant Bank Limited’s N2.81 billion series 25 and N2.47 billion series 26 commercial papers under the company’s N100.00 billion commercial paper issuance programme on its platform.
FGN bonds secondary market closed on a positive note on Tuesday as the average bond yield across the curve cleared lower by 68 bps to close at 13.15 percent from 13.83 percent on the previous day. Average yields across the short tenor, medium tenor, and long tenor of the curve decreased by 238 bps, 112 bps, and 10 bps, respectively.
The March 23, 2025 maturity bond was the best performer with a decrease in the yield of 360 bps, while the April 18, 2037 maturity bond was the worst performer with an increase in the yield of 31 bps.
The Debt Management Office (DMO) has released its FGN Bonds Issuance Calendar for the third quarter of 2023. The DMO is expected to offer bonds worth between N960-N1200 billion during the quarter through re-opening of 10-Year FGN April 2029 (N240-N300 billion), 10-year FGN June 2033 (N240-N300 billion), 15-year FGN June 2038 (N240-N300 billion) and 30-year FGN June 2053 (N240-N300 billion) tenors.
