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Naira Falls Against the Dollar as Foreign Exchange Sales Decrease

by Vicky Oselumese
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Naira Falls Against the Dollar as Foreign Exchange Sales Decrease

The Nigerian naira experienced a decline against the US dollar at the official market due to a drop in foreign exchange sales by banks.

On Thursday, the amount of dollars sold by banks and willing buyers and sellers decreased by 6.13 percent, totaling $321.23 million compared to the $342.22 million recorded on Wednesday.

According to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) provided by FMDQ, the naira depreciated by 4.10 percent, with the dollar being quoted at N1,479.47 on Thursday, weaker than the N1,418.78 quoted on Wednesday.

The intraday high closed at N1,504 per dollar, slightly stronger than Wednesday’s N1,510.

However, the intraday low weakened to N946.82 per dollar, compared to N896.28/$1 on Wednesday.

Meanwhile, in the money market, the Nigerian Treasury Bills (NT-Bills) secondary market concluded on a negative note.

Average yields across the curve surged by 261 basis points (bps) to reach 14.99 percent, compared to the previous day’s 12.38 percent.

Short-term and medium-term maturities experienced significant expansions, while long-term maturities saw a slight decline.

Despite the higher stop rates, the Central Bank of Nigeria (CBN) conducted its scheduled Primary Market Auction, offloading NT-Bills valued at N1,000.00 billion across varying tenors.

The auction witnessed robust demand with a 98 percent oversubscription, indicating strong investor appetite.

In the Open Market Operations (OMO) bills market, there was a slight positive sentiment as the average yield across the curve dipped by 1 basis point to close at 10.07 percent.

The long-term maturities also saw a marginal decline of 1 basis point.

This article was updated 2 weeks ago


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