Naira to Hit 360/Dollar at Investors’ Forex Market

The Naira is expected to firm slightly to 360 per Dollar at the Central Bank of Nigeria’s Investors and Exporters Foreign Exchange window this week as trading picks up after the Christmas and New Year holidays. The local currency had traded weaker at 362/Dollar at the I & E FX window on thin volumes on Thursday, 4th of January, 2018.

The Naira closed at 363/Dollar at the parallel market on Friday 5th of January, 2018, while at the official market, it was quoted at 305.95. The CBN’s regular interventions in the Forex Market have supported the local currency to remain fairly stable at the parallel and Bureau De Change segments of the Forex Market.

Meanwhile, the CBN has raised N161.54Bn ($513.64M) at a Treasury Bill auction after it received subscriptions for more than twice the amount on offer. The CBN sold N115.85Bn of the one-year debt at a rate of 14.30 per cent. It auctioned N11.77Bn and N33.93Bn, respectively in three- and six-month maturities at 12.54 per cent and 13.92 per cent. Total subscription stood at N388.50Bn.

In December, the Federal Government repaid N198Bn worth of Treasury Bills using part proceeds of a $3Bn Eurobond issue, instead of rolling over the debt to lower its borrowing costs. It plans to repay more bills this year. Investors bid as high as 18.6 per cent for the one-year paper. However, the Government has been offering debt at lower yields to track declining inflation, which fell for the 10th month in November to 15.90 per cent.

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