WED, 27 JULY, 2022-theGBJournal| The naira appreciated by 0.2% to N430.00/USD at the I&E window but skidded down to as low as N710/US$ at the parallel market today as surge in demand and scarcity of FX takes hold of market.
Parallel market traders told theG&BJournal to expect the local currency to be dancing around N800/$ market in coming weeks, blaming the scarcity on politics and the Central Bank of Nigeria’s (CBN) struggle to match demand with supply.
Meanwhile, the British pound to the Naira traded at between N740 and N785 today.
At the money market, the overnight lending rate remained elevated at 15.0%, as the funding conditions in the system deteriorated further, with system liquidity closing in a net short position of NGN163.62 billion.
Activities in the NTB secondary market remained quiet, as market participants positioned for today’s NTB PMA. Thus, the average yield was unchanged at 7.2%. Similarly, the average yield was flat at 8.9% in the OMO segment
Proceedings in the Treasury bond secondary market were bearish, as the average yield expanded by 5bps to 11.9%. Across the benchmark curve, the average yield expanded at the short (+7bps), mid (+4bps) and long (+4bps) segments, following profit-taking on the JAN-2026 (+35bps), APR-2032 (+10bps) and MAR-2035 (+20bps) bonds, respectively.
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