Naira Strengthens by 23.72%

Date:

Good news for Nigerians as the Nigerian Naira is strengthened by 23.72 percent because demand for dollars moderated at the official foreign Exchange (FX) market on Thursday, despite a drop in the volume of dollar supply in the FX market by 54.48 percent.

After trading on Thursday the dollar was quoted at N874.79 as against N1,082.32 that was quoted on Wednesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM) data.

Interested buyers and sellers quoted the dollar at N1,264.96, marking the highest bid rate, and at N475/$, marking the lowest spot rate. Although the daily FX market turnover went down by 54.48 percent to $110.41 million on Thursday from $242.60 million that was recorded on Wednesday.

In a positive light of events, the Nigerian Treasury Bills (NT-Bills) secondary market closed with a notable fall in average yields, signalling an increased investor confidence.

A report from the FSDH research said the average yield across the curve went down by 82 basis points (bps) to 3.28 percent, down from the previous day’s 4.10 percent.

This shift was particularly evident in short-term, medium-term, and long-term maturities, with declines of 27 bps, 93 bps, and 109 bps, respectively, while the NTB for July 11, 2024 maturity bill experienced significant buying interest, witnessing a decline of 142 bps.

On January 10, the Central Bank of Nigeria (CBN) conducted its scheduled Primary Market Auction, and successfully sold NT-Bills worth N149.40 billion across different tenors. The allocation included N2.78 billion for the 91-day, N94.33 billion for the 182-day, and N52.29 billion for the 364-day tenors.

The positive performance in the NT-Bills secondary market as well as the success of the CBN’s Primary Market Auction, shows a robust investor appetite and confidence in Nigeria’s short-term debt instruments.

 

 

 

 

 

 

 

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

FCCPC ORDERS MONITORING OF MARKET PRICES AMID NAIRA APPRECIATION

The Federal Competition and Consumer Protection Commission (FCCPC) has...

NEW AKWA IBOM POLICE PUBLIC RELATIONS OFFICER ASSUMES DUTY

The newly appointed Police Public Relations Officer (PPRO) for...

UEFA Champions League: Mbappe Stars As PSG Beat 10-man Barcelona

Luis Enrique returned to Barcelona to knock his former...

Tennis: Nadal Makes Triumphant Return At Barcelona Open

Rafael Nadal enjoyed a winning start at the Barcelona...