Nigerian naira appreciates against US dollar across market windows
Adesola Afolabi was a businessamlive reporter and Head of Financial desk.
The Nigerian naira traded 0.3 percent higher against the American dollar at N361 on the streets Tuesday in contrast to N362 it exchanged Monday while it grew by 0.02 percent to N361.91 in the investors and exporters foreign exchange window (IEW).
However, total turnover in the IEW dropped by 40.55 percent to $106.46 million, with trades executed within the N347.50-N363.50/$ band, as overnight lending rate fell 879 bps to 15.00 percent, against 23.79 percent, amidst the absence of OMO auction.
Activities remained bullish in the treasury bills market. Average yield dipped 3 bps to 12.18 percent. Yields were lower at the mid (-3 bps) and long (-12 bps) ends of the curve, following interests in the 114-day (-33 bps) and 219-day (-52 bps) bills, respectively, while selloff of the 23-day (+40 bps) bill caused yield expansion at the short (+3 bps) end of the curve.
Proceedings in the bond market were bearish, as average yield inched up by less than 1 basis point. Yields were higher at the mid (less than 1 bp) and long (+1 bp) segments of the curve, while it dipped by 1 bp at the short end.
The notable bonds include the FEB-2028 (+2 bps), MAR-2036 (+11 bps), and JAN-2022 (-5 bps) bonds, respectively.