In the I & E exchange window and the CBN Interbank market, the naira depreciated by 0.12% and 0.10% to close at NGN416.50/USD and NGN416.34/USD, respectively.
However, the disparity in the parallel market remains as the margin of difference narrowed to 5bps as it exchanges between NGN576/USD and NGN580/USD, depending on the state, location, amount, and negotiating prowess.
The exchange rates for other currency denominations can be found on our website.
Other economic indices remained unchanged despite external constraints from the continuing Russia-Ukraine war and a nationwide gasoline crisis. As a result, the external reserves, the MPR/lending rate, and the inflation rate were at $38.89 billion, 11.50 percent, and 15.60 percent, respectively.
Following the lack of any major funding pressure, the overnight lending rate, which is the interest rate charged among banks when they borrow from each other in the overnight market, fell by 42 basis points (bps) from 5.17 percent to 4.8 percent.
Trading in the NTB secondary market was calm as market players awaited the outcome of today's PMA (Primary Market Auction). As a result, the average yield has remained stable at 3.4 percent. In the OMO (Open Market Operation) market, the average yield increased by 61 basis points, to 3.9 percent.
Treasury bond secondary market activity was mixed, with a negative bias, as the average yield increased by one basis point to 10.4 percent.
Across the benchmark curve, the average yield fell at the short end (-1bp each) due to investors' purchasing activity of the APR-27, 2023 (-1bp), and MAR-14, 2024 (-1bp) bonds, but increased at the long end (+2bp) due to massive sell-offs in the MAR-18, 2036 (+14bps), and MAR-27, 2050 (+2bps) bonds.
In contrast, the average yield in the mid sector remained steady.
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