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Naira Closes Flat At N363/$

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The naira at parallel market closed flat at N363 against the dollar over slow business activities last week.

But the naira, over the weekend extended its losing streak against the pound and euro to close at N486 and N434, respectively, compared to N485 and N430 sold on Thursday at the parallel market.

Meanwhile, the Nigerian Autonomous Foreign Exchange (NAFEX) window recorded total transactions turnover of $575.2 million at the end of official first trading week in 2018.

The breakdown, showed that the autonomous foreign exchange window declared total turnover of $200.36 million on the first trading day in 2018, after the official foreign exchange market was closed on Monday, January 1, 2018, for celebration of the new year.

The figure, however, declined to $93.35 million at the close of the following day trading activities, represented a drop of $107.01 million compared to $200.36 million sold on Tuesday.

The NAFEX, otherwise known as Investors & Exporters Foreign Exchange (I & E FX) window on Thursday increased on the third day during the week to close at $177.02 million.

It, however, rebounded on the last trading day of the week with a closing transactions turnover of $104.87 million.

Analysts at Cordros Capital said, “Given the steady accretion to the foreign reserves, amid rising oil earnings (supported by rallying crude oil prices at $67.68/barrel) and higher foreign portfolio inflows, we expect the naira to remain stable.”

The I&E FX  window, began the last trading day of the week at an opened of N360.05, which was lower than N360.29 to the dollar exchanged on Thursday , and traded high at N362.40 before closing at N361.31 per dollar, weaker than 361.08 recorded on Thursday.

The Naira, as at close of the official foreign exchange market activities on Friday stabilised at N305.95 against the dollar, the same rate it exchanged on Thursday but lower than N305.50 sold on the first day of 2018, data obtained from the FMDQ OTC Securities Exchange has disclosed.

Proceedings in the Treasury Bill (TB) market started the year on a bearish note as average yield expanded by 24 basis points to 13.61per cent , against 13.37per cent in prior week.

Meanwhile, at the first TB auction of the year, the offered bills were 2.4x oversubscribed, with N11.77billion, N33.93billion,and N115.85billion of the 91-day,182-day, and 364-day bills sold at lower stop rates of 12.55 per cent (previously12.95per cent), 13.93per cent (previously 15.00 per cent), and 14.3 per cent (previously15.57per cent),respectively.

The overnight lending rate rose by 1,450basis points w/w to 19.00per cent, against the previous week’s close of 4.5per cent, as outflows via OMO sales worth N505.80billion outweighed inflow of matured OMO bills worth N193.61billion.





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