For­eign re­serves de­cline to $35.92bn as naira gains N1.50k

Business Day (Nigeria) - - NEWS - HOPE MOSES-ASHIKE

Nige­ria’s for­eign res e r ves de­clined by $59.86 mil­lion week-to­date to $35.92 bil­lion as for­eign ex­change (FX) out­flows con­tinue to sur­pass in­flows.

The price of Brent crude has im­proved to $44.42 per bar­rel as at Au­gust 03, 2020 from as low as around $20 per bar­rel in March this year. Oil ac­counts for more than 60 per­cent of govern­ment rev­enue and about 90 per­cent of the coun­try’s for­eign ex­change earn­ings.

Naira gained N1.50k as the dol­lar was quoted at N388.00k on Mon­day from N389.50k quoted on Wed­nes­day last week at the In­vestors and Ex­porters (I&E) forex win­dow, data from FMDQ in­di­cated.

The mar­ket ob­served lower vol­ume of trans­ac­tion due to tight­ened sys­tem liq­uid­ity. An­a­lysts at FSDH re­search said most par­tic­i­pants main­tained bids be­tween N380.00 and N392.50 per dol­lar.

Daily for­eign ex­change turnover de­clined fur­ther by 8.49 per­cent to $17.23 mil­lion on Mon­day from $18.83 mil­lion recorded on Wed­nes­day last week.

Ear­lier on Mon­day morn­ing, the mar­ket sig­naled ap­pre­ci­a­tion in the value of Naira with an in­dica­tive rate of N388.33k com­pared to N388.61k opened with on Wed­nes­day be­fore the hol­i­day.

The for­eign ex­change mar­ket re­sumed ac­tiv­ity on Mon­day morn­ing af­ter the two day hol­i­day, with

Nige­ria’s cur­rency sta­ble at N474 per dol­lar on the black mar­ket.

Dol­lar was trad­ing as high as N475 in some parts of La­gos where the black mar­ket op­er­a­tors are op­er­at­ing. The lo­cal cur­rency was also sta­ble at the re­tail Bureau with the dol­lar trad­ing at N475, since Tuesday last week.

At the money mar­ket, the av­er­age Nige­rian trea­sury bills yield re­mained un­changed at 1.75 per­cent across the curve. The Open Mar­ket Op­er­a­tion (OMO) bills mar­ket closed on a pos­i­tive note with av­er­age yield across the curve de­clin­ing by 18 bps to close at 4.05 per­cent.

The Overnight (O/N) rate in­creased by 12.23 per­cent to close at 14.33 per­cent on Mon­day. The Open Buy

Back ( OBB) rate also in­creased by 11.93 per­cent to close at 13.33 per­cent.

The CBN held its sched­uled Pri­mary Mar­ket Auc­tion on July 29, sell­ing NT- Bills worth N265.96 bil­lion across the 91- day (N49.84 bil­lion), 182-day (N54.59 bil­lion), and 364day (N161.52 bil­lion) tenors. The stop rates for the 91day, 182-day, and 364-day tenors cleared at 1.200 per­cent (-10 bps), 1.500 per­cent (-30 bps), and 3.400 per­cent (+5 bps), re­spec­tively.

The auc­tion was over­sub­scribed by 76 per­cent with bid-to-cover ra­tios set­tling at 1.89x (91-day), 2.91x (182-day), and 1.33x (364day). The auc­tion wit­nessed an in­creased sub­scrip­tion, es­pe­cially in 182-day bills, due to ex­cess liq­uid­ity in the mar­ket.


Kay­ode Alabi (l), deputy gov­er­nor and chair­man of Kwara State tech­ni­cal com­mit­tee on COVID-19, pre­sent­ing ace masks to Bisola Ahmed, com­mis­sioner for Ed­u­ca­tion and Hu­man Cap­i­tal De­vel­op­ment, for dis­tri­bu­tion across schools ahead of re­sump­tion of stu­dents pre­par­ing for Se­nior Sec­ondary School Cer­tifi­cate Ex­am­i­na­tions, in Ilorin yes­ter­day.

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