Nigerian naira falls 0.12% to U.S dollar at I&E window, trades flat at parallel market

The Nigerian naira recorded a 0.12 percent dip at the investors and exporters foreign (I&E) exchange window Thursday to settle at N361.22 to the U.S dollar. This is just as total turnover in the window dropped by 46.78 percent to $114.89 million, the lowest since 25th April.

The transactions were consummated within the N314.50-N363/$ band. However, the naira remained flat at N363 in the parallel market as.

At the fixed income and money market, the overnight lending rate eased 1,096 basis points to 13.71 percent, following inflows from matured OMO and treasury bills worth N262.61 billion and N67.68 billion respectively.

The CBN mopped up N40.95 billion via OMO auction, selling N58.14 million of the 112DTM and N40.89 billion of the 182DTM, at respective stop rates of 11.05 percent and 12.15 percent.

Sentiments were slightly bearish in the NTB secondary market, as average yield rose by 4 bps to 13.10 percent. Selloffs of the 7DTM (+480 bps) bill led to yield expansion at the short (+36 bps) end of the curve. Conversely, yields at the mid (-11 bps) and long (-12 bps) segments contracted, on the back of demand for the 140DTM (-133 bps) and 259DTM (-55 bps) bills, respectively.

However, bullish sentiments prevailed in the bond market, as yield fell by 2 bps, on average, to 13.16 percent. Investor interest was high at the short (-18 bps) end of the curve, with the FEB-2020 (-46 bps) bond recording a significant contraction. Conversely, selloffs of the MAR-2024 (+14 bps) and MAR-2036 (+11 bps) bonds led to yield expansions at the mid (+7 bps) and long (+7 bps) segments.