Naira falls to N505 per dollar at parallel market; forex trade hits $172.24m
The exchange rate between naira and the US dollar closed at N411.75/$1 at the official Investors and Exporters window on Tuesday June 15.
The Nigerian local currency depreciated against the US dollar to close at N411.75 to a dollar. This represents a 95kobo loss compared to N410.8/$1 recorded on Friday, 11th June 2021.
Also, the naira depreciated by N3 at the parallel market to close at N505/$1 on Tuesday as against N502/$1 recorded on Monday, while Nigeria’s foreign reserve position slumped to its lowest in over two years.
Forex turnover increased by 85.6 per cent to stand at $172.24 million on Tuesday.
Trading at the official NAFEX window
The naira depreciated against the US dollar at the Investors and Exporters window on Tuesday to close at N411.75/$1, representing a 0.25% decline when compared to the N410.8/$1 that was recorded on Friday last week
The opening indicative rate closed at N411.46 to a dollar on Tuesday, 15th June 2021 representing a 90 kobo decline when compared to the N410.56/$1 recorded on Friday, 11th June 2021.
Also, an exchange rate of N420.97 to a dollar was the highest rate recorded during intra-day trading, before it settled at N411.75/$1. It also sold for as low as N400/$1 during intra-day trading, the same as recorded in over a week.
Forex turnover at the Investors and Exporters (I&E) window increased by 85.6% on Tuesday, 15th June 2021.
Data obtained by Business Metrics from FMDQ indicated that forex turnover increased from $92.78 million recorded on Friday, 11th June 2021 to $172.24 million on Tuesday.
Money and fixed income market
Meanwhile, in the money and fixed income market, The overnight lending rate dipped by 7.8ppts to 15.2%, following inflows to the system from OMO maturities (N46.00 billion).
The NTB secondary market closed flat, as the average yield was flat at 6.4%. Elsewhere, the average yield at the OMO segment expanded by 4bps to 9.7%.
Trading in the Treasury bond secondary market was mixed, as the average yield was flat at 12.2%.
Across the benchmark curve, average yield was flat at the short and long ends but expanded at the mid (+2bps) segment, following sell-off of the JUL-2030 (+5bps) bond.