Nigerian naira weakens 0.12% as CBN plans N355.5bn T-bills auction Wednesday - BUSINESS A.M

JUNE 12, 2018

The Nigerian naira was down 0.12 percent against the United States dollar at the importer and exporter (I&E) official foreign exchange window Tuesday, trading at N361.30 to $1, but remained flat at the unofficial street currency market where it traded at N362 to $1.

Total turnover in the I & E Window surged 183.02 percent to $269.44 million, traded within the N353-N362/$ as against the N320-N362.25/$ band traded previously.

At the inter-bank money market, the overnight lending rate expanded 392 bps to 16.50 percent, from 12.58 percent in the previous session, amid persisting strain on market liquidity.

Proceedings were bullish in the NTB market, as average yield dropped 4 bps to 12.73 percent. Buy sentiment was concentrated at the mid (-15 bps) segment of the curve, with the yield on the 93DTM (-125 bps) bill moderating significantly.

Conversely, yields expanded at the short (+3 bps) and long (+1 bp) ends of the curve, driven by selloffs of the 23DTM (+49 bps) and 275DTM (+47 bps) bills, respectively.

Meanwhile, at the NTB auction scheduled for tomorrow, Nigeria’s central bank will offer N180.86 billion – N6.22 billion of the 91-day, N50 billion of the 182-day, and N124.64 billion of the 364-day – worth of bills to the market.

The bond market also traded on a bullish note, as average yield moderated by 7 bps to 13.31 percent.

Yields contracted across all ends of the curve – short (-8 bps), mid (-11 bps), and long (-4 bps) – driven by demand for the JAN-2022 (-19 bps), JAN-2026 (-13 bps), and JUL-2030 (-10 bps) bonds, respectively.


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