By ADEBISI ADEMOLA
The Naira against the Dollar on Monday depreciated to N306.25 despite the Central Bank of Nigeria (CBN) intervention in the foreign exchange market.
The apex bank during the weekend resumed it’s intervention into the foreign exchange market, with $303.91 million injected into the interbank retail Secondary Market Intervention Sales (SMIS) and CNY 46.58 million sold in spot and short-tenured forwards.
The Naira of recent at foreign exchange markets continued to witness persisted fall aimed the country’s political pressure.
The Bureau De Exchange (BDC) website noted that naira closed on Monday at N362 against the Dollar but appreciated by 0.28per cent to N360 in the parallel market
The Naira weakened by 0.09per cent to N363.11 in the Investors &Exporters Foreign Exchange window (I & E ) FX, according to FMDQ OTC securities.
Overnight lending rate expanded 158 basis points to five per cent, from 3.42per cent last Friday, as the CBN mopped up excess liquidity via OMO auction, selling a total of N21.75 billion of the 199DTM bill at a stop rate of 12.50per cent.
The apex bank offered N100 billion apiece of the 73DTM and 136DTM bills, however, no sales were recorded.
Activities in the treasury bills market were bearish, following the liquidity mop-up, as average yield rose by 35 basis points to close at 12.70 per cent.
Yields at the short (+43 bps), mid (+17 bps) and long (+25 bps) ends of the curve expanded, driven by selloffs of the 80DTM (+88 bps), 101DTM (+36 bps) and 311DTM (+52 bps) bills, respectively.
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