MARKET NEWS

• Naira Trades Flat Ahead of Eid Fitr Celebration

The Nigerian Naira traded flat against the United States Dollar at the Investors & Exporters FX Window on Thursday.

President Muhammadu Buhari on Thursday declared Monday and Tuesday public holidays for Muslims in Nigeria to celebrate the Eid Fitr following 30 days of fasting.

The local currency was exchanged at N386.50 to a US dollar on Thursday, slightly up by 0.02 percent when compared with N386.42 it traded on Wednesday.

The volume of currency traded dropped from $85.61 million on Wednesday to $22.50 million on Thursday.

The Naira gained slightly this week following the Central Bank of Nigeria’s announcement it has resumed the sales of forex to commercial banks for specific purposes.

However, the currency remained under pressure given the weak revenue generation and the uncertainty surrounding the economy at large.

Experts had predicted that the Naira could trade at over N500 to a US dollar in few years despite the central bank saying macro fundamentals remained supportive.

Earlier this week, the Fitch Ratings said the nation’s foreign reserves could plunge to about $23 billion with the new production agreement signed with OPEC plus and low demand for the battered commodity.

Still, investors seem bullish on the economy, especially with yield on government bond trading at a record low of about 9 percent, down from 13 percent. Another indication of investors’ interest in Nigerian assets.