Browsing: Naira

The average yield on Nigerian Treasury bills crashed to 21% in the secondary market on Tuesday following an increased position across the curve. The buying momentum was supported by a surge in liquidity levels following inflows from matured OMO bills in the market.

Following Nigeria’s decision to float the local currency, Fitch Rating has projected that the naira, will end the year at N1,450 to the US dollar. The Director,

The Nigerian naira reclaimed small of value it has lost in the currency market on Monday. The Nigerian naira closed the trading session on the positive on Monday, appreciated by 0.66% to #1476.12 per unit of US dollar at the autonomous FX market.

The naira continued to underperform bullish expectations of major investment firms, including Goldman Sachs, Financial Derivate Companies, Renaissance, and others, amidst claim by the apex bank that the local currency is undervalued.

The foreign currency scarcity problem caused the Central Bank of Nigeria (CBN) to intervene in the forex market five times in response to negative exchange rate movements. Overall, the apex bank injected $33 million to boost FX liquidity in the market.

Nigeria’s foreign exchange crisis has gotten so bad that even the monetary authority’s currency injections have not been able to reverse the value of the naira. It was a fight to survival in the foreign exchange market where sustained demand for imports forced the Nigerian naira to descend for a kiss with the dragon, which caused the local currency to bleed.

Buying interest in Oando Plc, Nestle Nigeria, banking names, and other supporting stocks is pushing the market capitalisation of the Nigerian bourse upward. The latest rally in the stock market has been boosted by dividend payment expectations and overall positive expectations in the Lagos bourse.

The naira appreciate by 12.35%  to N1,173.88 at the official market at the close of business on Tuesday but FMDQ left fx spot rate data at N1339 instead, creating confusion for majority of news platforms. However, the platform has corrected after flood of wrong FX spot were reported.

In the bond market, there was slight trading activity for FGN Bonds in the secondary space. However, the average yield stayed muted at 18.69%, sustaining negative interest yield on naira asset.

The naira rate appreciated strongly on Tuesday, gained 12.35% day-on-day to N1,173.88 per United States (US) dollar in the Nigerian autonomous foreign exchange market.