WED JULY 09 2025-theGBJournal| The naira weakened to a new low on Wednesday against the U.S dollar, raising concerns about Nigeria’s growing public debt problems.
The fall reflects the jitters in the market since the Central Bank of Nigeria announced the resumption of Naira Card transactions in the market.
Analysts tells theG&BJournal that the move may have spooked portfolio investors, the reason why FX liquidity from domestic and foreign sources is squeezing more tightly, alongside demand pressures.
By close of official trade today, the Naira fell by 0.1% to N1,531.00/US$1 from N1,530.00/US$1.
Meanwhile, the FGN Bond and treasury bills yield continues to fall despite inflation and fiscal risk.
The FGN Bonds average yield contracted by 6bps to 16.9%.
Across the benchmark curve, the JUL-2030 and 2031 bonds yield fell -88bps and -60bps respectively, amid demand pressure as the average yield contracted at the short (-3bps) and mid (-18bps) segments.
The NTB secondary market traded on a bullish note, as the average yield contracted by 8bps to 19.4%.
Across the curve, the average yield contracted at the short (-2bps), mid (-1bp) and long (-14bps) segments, driven by the demand for the 92DTM (-34bps), 162DTM (-2bps). and 239DTM (-162bps) bills, respectively.
Conversely, the average yield expanded by 2bps to 25.1% in the OMO segment.
The overnight lending rate expanded by 109bp to 30.4%, in the absence of any significant funding pressure on the system.
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