Nigerian naira weakens 0.24% at IEW, 0.28% on the streets

By Adesola Afolabi is  Businessamlive Reporter.

Nigeria’s domestic currency, the naira, depreciated 0.24 percent to N361 against one United States dollar at the investors and exporters window (IEW) of the foreign exchange market on Thursday and dropped 0.28 percent to N362.25 to $1 on the streets, where currencies are unofficially sourced by many Nigerians, at what is popularly called the parallel market.

Total turnover in the IEW rose by 11.83 percent to $179.09 million, with trades executed within the range of N345-N363 against $1.

At the money market, the overnight rate crashed to 5.17 percent, representing a 1,316 bps contraction, following inflows of OMO and treasury bills worth N238.65 billion and N170.54 billion respectively, and in the absence of any OMO auction.

Bullish sentiments were sustained in the NTB secondary market, as average yield fell by 10 bps to 12.06 percent.

Demand for the 21DTM (-31 bps), 105DTM (-13 bps), and 189DTM (-19 bps) bills led to yield contraction at the short (-9 bps), mid (-13 bps), and long (-7 bps) ends of the curve, respectively.

Activities on the bond market were mixed, albeit with a bearish tilt, as yield expanded by 1 bp on average, to 13.89 percent. Yield at the long (+6 bps) segment expanded, on the back of selloffs of the MAR-2036 (+17 bps) bond.

Conversely, yield contracted by 2 bps apiece at the short and mid segments, driven by demand for the JUN-2019 (-7 bps) and FEB-2028 (-8 bps) bonds, respectively.