The nation’s currency depreciated against the
dollar week on week at the Investors & Exporters Forex Window (I&E FXW) by 0.20 per cent. The naira trade at N361.57 amid 19.88 per cent w-o-w decreased turnover to $782 million in line with some analysts expectation.
Also, the local currency weakened against the the dollar at the parallel (‘black’) market and the Bureau De Change segments by 0.55 per cent each to close N366 to a dollar and N364 to a dollar respectively.
However, the Naira against the dollar rate remained unchanged at the interbank foreign exchange market, trading at N330.00 per dollar amid weekly injections by Central Bank of Nigeria (CBN) of $210 million into the foreign exchange market; of which $100 million was allocated to Wholesale (SMIS), $55 million was allocated to Small and Medium Scale Enterprises and $55 million was sold for invisibles. Meanwhile, most dated forward contracts at the interbank over-the-counter (OTC) segment depreciated. Spot rate, for one month, two months, three months contracts weakened by 0.02 per cent , 0.19 per cent, 0.13 per cent and 0.03 per cent to close at N305.90 to a dollar , N364.97 per dollar , N368.62 per dollar and N372.42 to a dollar respectively. However, six months contracts strengthened by 0.38 per cent to close at N384.78/ dollar respectively.
Financial analysts expect depreciation in the exchange rate at most market segment, especially the I&E FXW amid increase demand for United States dollar by foreign portfolio investors.
Meanwhile, FGN bonds traded at the over-the-counter (OTC) segment moved in different directions in value across maturities tracked; the 20-year, 10 per cent FGN JULY 2030 debt and the 7-year 16.00 per cent FGN JUN 2019 debt depreciated by N0.23 and N1.10 respectively while their corresponding yields rose to 13.43 per cent from 13.38 per cent and 12.79 per cent from 11.78 per cent respectively. The 10-year 16.39 per cent FGN JAN 2022 debt and the 5-year 14.50 per cent FGN JUL 2021 debt increased by N0.22 and and N0.39 respectively while their corresponding yields declined to 13.45 per cent from 13.54 per cent and 13.28 per cent from 13.63 per cent respectively.it is expected that this week there would be decreases in the bond prices and yields rise at the OTC market on the back of expected aggressive mop up by the apex regulator.
