Naira Appreciates Against US Dollar In I & E Window

The naira appreciated by 0.1% to close at N414.80 against the United States Dollar in the I & E window on Thursday, November 18, 2021. It, however, depreciated by -0.03% at the interbank bank market to exchange at N411.57 to a US Dollar. Figures compiled by our correspondent showed that the naira still exchanged at an average price of N545.15 to a US Dollar in the parallel market.

In other news, the interbank offered rate contrasted by 39bps as it fell from 13.95% to close at 13.56%. While the overnight lending rate expanded by 25 basis points to 14.0%, following significant funding pressures that surpassed inflows from OMO maturities.

Trading in the treasury bills secondary market was bullish as the average yield contracted by 13 basis point to 5.0%. Across the benchmark curve, the average yield was unchanged at the short and mid-segments but contrasted at the long end by -26 bps following market participants’ demand for 252DTM bill.

Elsewhere, the average yield at the OMO segment stayed unchanged at 5.5%.

Although with a bullish run, the treasury bond secondary market continued trading mixed sentiments, as the average yield contracted slightly by -1bp to 11.2%.

Unlike the NTB market, buying activity across the benchmark curve was witnessed at the long (-1bp) end, where investors demanded the MAR 2034 (-5bps) bond while the average yield at the short and mid-segments was flat.

X-raying other economic indicators, the Monetary Policy Rate (MPR) remained flat at 11.50% as we look forward to the upcoming Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN).

Inflation from the NBS figure still stood by 20.75% as the external reserve stabled at US$41.42 billion.

Across all secondary market bonds, benchmark FGN bonds remained flat as yields remain unchanged except the Jul, 2030 to April 2037 which experienced a -0.01%, -0.04%, -0.04%, -0.05% and -0.04% declined due to investors pressure.