On both the official and unofficial foreign currency (FX) markets on Wednesday, the naira fell against the dollar.
According to data from the FMDQ, the Naira lost 0.15 percent of its value after trading on Wednesday, when the dollar was quoted at N461.67 against the previous closing of N461.00 at the Investors and Exporters (I&E) FX window.
The weakening of the naira came after the market saw little action; on Wednesday, the daily turnover of the foreign exchange market fell by 54.82 percent to $69.33 million from $153.45 million on Tuesday.
The majority of the currency traders who took part in the FX auction on Wednesday kept their bids for each dollar between N440.00 and N462.00.
On Tuesday, the Nigerian foreign exchange market reopened for the New Year, with the Naira strengthening against the dollar in both official and black markets.
According to a report by FSDH research, the secondary market for Nigerian treasury notes ended on a good note on Wednesday with the average yield throughout the curve falling from 5.29 percent the day before by 137 basis points to 3.92 percent. Medium-term and long-term average yields both decreased by 147 basis points and 265 basis points, respectively.
The Open Repo (OPR) rate, which is referred to as a repurchase transaction that is agreed upon without fixing the maturity date, stayed steady at 9.50 percent while the Overnight (O/N) rate remained unaltered at 9.83 percent.
The average yield across all short-term maturities, according to the study, closed unchanged at 3.32 percent. Six bills’ yields decreased, with the NTB 26-Oct-23 (-436 bps) maturity bills seeing the highest level of buying demand.
The secondary market for Federal Government of Nigeria (FGN) bonds ended today with a little gain as the average bond yield throughout the curve decreased by 8 basis points to settle at 13.07 percent, down from 13.15 percent the day before. Average yields on the curve’s short and long tenors decreased by 44 basis points and 2 basis points, respectively. The average yield for the curve’s medium tenor, however, stayed constant.