The naira traded high and low at N986.00 and N701.00, respectively at the FMDQ Exchange market amid demand from investors and exporters.
However, the exchange rate between the naira and dollar fell to N1,100 on the parallel market according to traders who sell foreign exchange per inflow.
From select traders who confirmed quotes between N1,100-N1,110 for inflow. Inflows are forex transactions sold or bought over the wires.
The exchange rate atthe official Nigerian foreign exchange market fell to the lowest ever point of N848/$1 on Tuesday marking a turning point in Nigeria’s exchange rate crisis.
“Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies,” according to analysts at InvestmentOne Research.
Meanwhile, money market rates expanded today as the Open buyback and Overnight rates rose by 23 basis points and 30 basis points to close at 1.17 percent and 1.80 percent, respectively.
The bond market traded on a flattish note as yields were unchanged on most maturities across the curve. Hence, the yield on the 5-year benchmark bond decreased by 9 basis points to close at 14.08 percent, while the yields on the 10-year and 20-year benchmark bonds closed flat at 15.00 percent and 15.57 percent, respectively.
“In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation,” they added.
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