Naira Falls at Official Market Despite Increased Dollar Supply

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Despite a surge in dollar supply, the official foreign exchange market witnessed a depreciation of the Nigerian naira against the US currency. The naira fell by 1.15%, with the dollar quoted at N854.61 compared to N844.85 on the previous day at the Nigerian Autonomous Foreign Exchange Market (NAFEM), according to data from FMDQ.

Dollar supply showed a substantial increase of 62.22%, reaching $181.30 million on Wednesday, up from $111.76 million on Tuesday. The fluctuation in exchange rates was observed both in the spot trading and lower spot segment.

In other financial markets, the Nigerian Treasury Bills (NTB) secondary market reported a positive closure, with the average yield decreasing by 12 basis points to 8.51%. The Open Market Operation (OMO) bills market experienced an unchanged average yield across the curve at 11.38%.

Meanwhile, the Federal Government of Nigeria (FGN) bonds secondary market closed on a flat note, with the average bond yield across the curve remaining at 14.62%. The FGN savings bond auction for December 2023 saw bonds worth N1.67 billion allotted across two-year and three-year tenors at coupon rates of 12.287% and 13.287%, respectively.

The financial report provides insights into the dynamics of currency exchange, treasury bills, and government bonds in the Nigerian financial landscape.

Source: Business Day

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