Naira re­verses gain, ex­changes at N437.5k on black mar­ket

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

Nige­ria’s cur­rency on Thurs­day re­versed about N7.50k gain to ex­change at an av­er­age rate of N437.50k with the dol­lar from N430 ex­changed on Wed­nes­day on the black mar­ket.

The mar­ket wit­nessed an in­creased de­mand for dol­lar from con­sumers who need the green­back to meet some obli­ga­tion as un­cer­tainty still grips the mar­ket.

More so, panic selling has mod­er­ated as traders are now play­ing ‘wait and watch’ game to see the di­rec­tion of rates when the Cen­tral Bank of Nige­ria (CBN) sells dol­lar to Bureau De Change (BDC) op­er­a­tors on Mon­day.

The CBN on Thurs­day, Au­gust 27, in­formed the gen­eral pub­lic that grad­ual sales of for­eign ex­change (FX) to li­censed BDC op­er­a­tors would com­mence with ef­fect from Septem­ber 7, 2020.

In­ves­ti­ga­tion shows that dol­lar was selling at N435 and black mar­ket op­er­a­tors were buy­ing at N430 at the La­gos in­ter­na­tional air­port and Fes­tac area of La­gos.

Dol­lar sold for N440 at Apapa and Eko Ho­tel black mar­ket where the op­er­a­tors were buy­ing at N432 at Eko Ho­tel and N430 at Apapa area of La­gos.

The lo­cal cur­rency strength­ened at the re­tail bureau by N10 as the dol­lar traded at N455 on Thurs­day from N465 traded the pre­vi­ous day.

At the In­vestors and Ex­porters (I&E) forex win­dow, the mar­ket opened with an in­dica­tive rate of N386.48k on Thurs­day, which was a de­pre­ci­a­tion of N0.40k when com­pared to N386.08k opened with on Wed­nes­day, data from FMDQ re­vealed.

The mar­ket closed with naira los­ing N0.25k as the dol­lar was quoted at N386.25k on Thurs­day from N386.00k closed since Tues­day, at the I&E win­dow. An­a­lysts at FSDH said most par­tic­i­pants main­tained bids be­tween N380.00 and N395.13 per dol­lar.

The value of Nige­ria’s cur­rency im­proved fur­ther on Wed­nes­day by N10 as the cost of dol­lar dropped to N430 (selling) com­pared to N440 traded on Tues­day on the black mar­ket.

At the money mar­ket NTBills mar­ket closed on a neg­a­tive note with av­er­age yield across the curve in­creas­ing by 4 bps to close at 2.13 per­cent from 2.09 per­cent on the pre­vi­ous day. The av­er­age yield across medium-term ma­tu­ri­ties widened by 17 bps, while av­er­age yields across short­term and long-term ma­tu­ri­ties re­mained un­changed at 1.22 per­cent and 3.18 per­cent, re­spec­tively.

Selling pres­sure was wit­nessed in the NTB 11-Feb-21 (+79 bps) and NTB 28-Jan21 (+29 bps) ma­tu­rity bills, while buy­ing in­ter­est was seen only in the NTB 14Jan-21 ma­tu­rity bill with a de­cline in yield of 21 bps, ac­cord­ing to a report by FSDH.

In the Open Mar­ket Op­er­a­tion (OMO) bills mar­ket, the av­er­age yield across the curve de­clined by 15 bps to close at 2.77 per­cent as against the last close of 2.92 per­cent. Buy­ing in­ter­est was wit­nessed across short-term and medium-term ma­tu­ri­ties with av­er­age yields fall­ing by 28 bps and 10 bps, re­spec­tively. How­ever, the av­er­ageyield across longterm ma­tu­ri­ties in­creased by 2 bps.

L-R: Bim­bola Olashore, vice pres­i­dent, Nige­rian-bri­tish Cham­ber of Com­merce (NBCC); Bisi Adeyemi, deputy pres­i­dent, and Uwa­mai Igein, first vice pres­i­dent, at the NBCC 41st an­nual gen­eral meet­ing in La­gos.

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